Purpose a production budget for second quarter of year

Assignment Help Project Management

Reference no: EM1343269

Grainger Manufacturing Inc. produces outdoor grills. On March 31, the company had 120 grills in inventory. The company's policy is to maintain a grill inventory equal to 15% of next month's sales. The company expects the following sales activity for the second quarter of the year:

April 800 units
May 2,000 units
June 2,600 units

Sales for July and August are expected to be 1,800 units and 1,400 units respectively. Each completed unit of finished product requires 3 pounds of a heat resistant plastic material which costs $4.00 per pound. The company has determined that it needs 20% of next month's raw material on hand at the end of each month. The company had 600 pounds of plastic on hand at the end of March.

A. Purpose a production budget for the second quarter of the year.
B. Purpose a budget for the second quarter of the year showing the projected cost of the direct materials (plastic) that will be needed.

Reference no: EM1343269

Questions Cloud

What is the critical path when normal activities are used : What is the critical path when normal activities are used and evaluate the minimum total direct cost for each of the following project durations

Draw a network for the project using aon method : Draw a network for the project using AON method and evaluate the critical paths and identify them by double lining the arrows connecting the activities on the CP

Would you recommend that this project be adopted : Fortran Corporation - Would you recommend that the project be adopted

Environmental forces : Explain in your own words how heredity and environmental forces have combined to affect your development. Give one example of each and your answer should not exceed more than 100 words.

Purpose a production budget for second quarter of year : Purpose a production budget for the second quarter of the year and purpose a budget for the second quarter of the year showing the projected cost of the direct materials (plastic) that will be needed.

Creation of the work breakdown structure : Give a generic method for creating a project schedule starting with the creation of the work breakdown structure (WBS).

Was terrys presentation appropriate for the audience : Was Terry's presentation appropriate for the audience and how could Terry have better prepared for the presentation

What is project''s terminal year cash flow now : Consider that in five years, Grant Publishing actually is able to get $140,000 for the equipment even though it has a book value of only $100,000 and what is the project's terminal year cash flow now?

Evaluate the optimal production size for fertilizer : Evaluate the optimal production size for the fertilizer and evaluate the maximum inventory level

User Account

All Pages