Required total production-cost of purchases

Reference no: EM1357957

Greener Grass Fertilizer Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 6 percent per month. The desired monthly ending inventory in units of finished product is 75 percent of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Each unit of finished product requires 6 pounds of raw material at a cost of $1.15 per pound. There are 790,000 pounds of raw material in inventory on June 30.

Required:

1. Compute the company's total required production in units of finished product for the entire three month period ending September 30. (Do not round intermediate calculations. Round your final answer to the nearest unit.)

2. Independent of your answer to part (1), assume the company plans to produce 620,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month period ending September 30. (Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM1357957

Questions Cloud

Manufacturing and customer cost hierarchy : Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories:

Old diagnostic category referred to smiling depression : There is an old diagnostic category referred to as "smiling depression" that may have some relevance here.

Explain how karl lifed th cement : Explain how Karl lifed th cement. How much time would it take for the police officer to catch the speeder, assuming that the speeder maintains a sonstant speed? How fast will the police officer be traveling at this time.

Calculate the price of each of the bonds : An investor has two bonds in his or her portfolio, Bond C and Z. Each matures in four years, has a face value of $1,000, and has a yield to maturity of 9.6%.

Required total production-cost of purchases : Compute the company's total required production in units of finished product for the entire three month period ending September 30. (Do not round intermediate calculations. Round your final answer to the nearest unit.)

Supply chains and improve overall firm performance : Expalin how can concentrated clusters enhance the management of supply chains and improve overall firm performance?

Write program that uses recursive function to count number : Write a program that uses a recursive function to count the number of blobs in a square grid. Input to the program should consist of the locations of the asterisk in the grid.

Calculate and describe the nash equilibrium : Calculate and describe the Nash equilibrium (quantities, price and profits) in the game in which both firms choose their quantities simultaneously.

Analysis two areas in which the sixty percent participation : Analysis two areas in which the 60 percent participation rate of women in the workforce has impacted organizations in America.

User Account

All Pages