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Greener Grass Fertilizer Company plans to sell 270,000 units ofnished product in July and anticipates a growth rate in sales of 6 percent per month.
Greener Grass Fertilizer Company plans to sell 270,000 units ofnished product in July and anticipates a growth rate in sales of 6 percent per month. The desired monthly ending inventory in units of nished product is 90 percent of the next month's estimated sales. There are 243,000 nished units in inventory on June 30. Each unit of finished product requires 5 pounds of raw material at a cost of $1.15 per pound. There are 890,000 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 threemonth period ending September 30. (Round all intermediate calculations and your final answer to the nearest unit.) 2. Independent of your answer to requirement 1, assume the company plans to produce 620,000 units of finished product in the threemonth period ending September 30, and to have rawmaterial inventory on hand at the end of the threemonth period equal to 25 percent of the use in that period. Compute the total estimated cost of rawmaterial purchases for the entire threemonth period ending September 30. E Total required production in units Total estimated cost
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