The Casings Plant of Wyoming Machines makes plastics shells for the companys calculators. (Each calculator requires one

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The Casings Plant of Wyoming Machines makes plastics shells for the company’s calculators.

(Each calculator requires one shell.) For each of the next-two years, Wyoming expects to sell_640,000 calculators. The beginning finished goods inventory of shells at the Casings Plant is 80,000 units. However, the target ending finished goods inventory for each year is 20,000 units.

Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 240,000 ounces of plastic are in inventory. Management has set a target to have plastic on hand equal to two-months’

sales requirements. Sales and production take place evenly throughout the year.

Required

a. Compute the total targeted production otf he-finished_prtohed cuocmitngf oyerar .

b. Compute the required amount of plastic to be ed for the coming year.

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Related Book For  book-img-for-question

Fundamentals Of Cost Accounting

ISBN: 0071332618

2nd Edition

Authors: William Lanen, Shannon Anderson

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