Determining production costs

Assignment Help Accounting Basics

Reference no: EM1362719

The Fancy Umbrella Company makes beach umbrellas. The production process requires 3 square meters of plastic sheeting and a metal pole. The plastic sheeting costs $0.50 per square meter and each metal pole costs $1.00. At the beginning of the month, the company has 5,000 square feet of plastic and 1,000 poles in raw materials inventory. The preferred raw material amount at the end of the month is 3,000 square feet of plastic sheeting and 600 poles. The company has 300 finished umbrellas in inventory at the beginning of the month and plans to have 200 finished umbrellas at the end of the month. Sales in the coming month are expected to be 5,000 umbrellas.

a. How many umbrellas must the company produce to meet demand and have sufficient ending inventory?

b. What is the cost of materials that must be purchased?

Reference no: EM1362719

Questions Cloud

Find the resulting angular speed of the disk : A 47 kg person, standing 0.980 m from the axis, begins to run on the disk in a circular path and has a tangential speed of 3.10 m/s relative to the ground. Find resulting angular speed (in rad/s) of the disk.

Nutritional habits-incorporate to herlifestyle : Identify and describe three new nutritional habits that one could reasonably incorporate into herlifestyle. How could these new habits improve your health?

Organic food and bottled water : Is organic food a fad and why does it cost more than normal food and aren't pesticides used on organic food also?

Illustrate what happens to the marginal product : Illustrate what happens to the marginal product of each individual factor as that factor is increased, and the other factor is held constant.

Determining production costs : The Fancy Umbrella Company makes beach umbrellas. The production process requires 3 square meters of plastic sheeting and a metal pole. The plastic sheeting costs $0.50 per square meter and each metal pole costs $1.00.

Hospital maintenance case : How many hours each month are spent performing preventive maintenance if they achieve their 90% utilization and corrective/ preventive mix targets?

Write program to allow user to enter marks of students : Write a program that allows user to key in marks of students. The number of students is determined by the user at the start of the program.

Which type of research is professor carter employing : Which kind of research is Professor Carter employing.

Taxation of nonprofit organizations : Your local government created an agency to serve the local community in providing low income housing. That housing agency, called the Local Housing Board, is a tax exempt agency of local government and was created to receive federal funds for hous..

User Account

All Pages