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What sales would be needed to increase the company MOS

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Reference no: EM132934183

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Q1. Assume the following information pertaining to Cub Company:

Prime costs $203,500

Conversion costs 238,000

Direct materials used 90,950

Beginning work in process 105,650

Ending work in process 84,400

Total manufacturing cost is calculated to be?

Q2. Label Corp. recorded sales of $2,235,117 for the most recent year. The company's breakeven sales point (in dollars) is $1,710,000, and its margin of safety ratio (MOS%) at the current sales level is 25%. What sales (in dollars) would be needed to increase the company's MOS% to 32%?

Q3. Doanne Food Processing expects to have 55,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive:

April 139,000

May 149,000

June 177,000

July 139,000

At the end of each month the firm desires its ending raw material inventory to be 15% of the next month's production needs. Each finished unit requires three pounds of raw materials. Doanne's budgeted purchases (in pounds) of raw materials for June would be?

Reference no: EM132934183

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