Exercise 13-29 Estimate Production and Materials Requirements (LO 13-4)

(Please show step by step calculations so I can understand how to do this. I can't find a problem like it anywhere)

The Casings Plant of Wyoming Machines makes plastics shells for the companys 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 90,000 units. However, the target ending finished goods inventory for each year is 25,000 units.

Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 230,000 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 of the finished product for the coming year.

b. Compute the required amount of plastic to be purchased for the coming year. (Do not round intermediate calculations.)

Exercise 13-29 Estimate Production and Materials Requirements (LO 13-4) 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 90,000 units. However, the target ending finished goods inventory for each year is 25,000 units. Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 230,000 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 yea. Required a. Compute the total targeted production of the finished product for the coming year. Total targeted production in units b. Compute the required amount of plastic to be purchased for the coming year. (Do not round intermediate calculations.) Materials to be purchased in ounces References eBook & Resources Worksheet Difficulty: 2 Medium Exercise 13-29 Estimate Production and Materials Requirements (LO 13-4) Learning Objective: 13-04 Develop production and cost budgets