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Hank Manufacturing makes cleaning solvent sold in large container with a plastic liner. Their monthly sales forecast consists of: January 40,000 units, February 38,500 units,
Hank Manufacturing makes cleaning solvent sold in large container with a plastic liner. Their monthly sales forecast consists of: January 40,000 units, February 38,500 units, and March 39,750 units. Desired ending inventory of finished goods (in units) is 10% of the next month's sales forecast. Planned production (in units) for next quarter is: January 43,800 units February 41,000 units March 50,250 units Further, each container of cleaning solvent consists of: 6 gallons of chemicals 1 plastic liner Company policy requires that ending inventories of raw materials for each month be 15% of the next month's production needs. The policy was met for the ending inventory of December in the prior year. The cost of one gallon of chemicals is $2.00. The cost of one liner is $1.60. 1. Calculate the ending inventory of chemicals (in gallons) for December of the prior year, and then for January and February. (must use a formula/calculation in each cell) December, ending inventory: January, ending inventory: February, ending inventory: 2. Calculate the ending inventory of plastic coating (in units) for December of the prior year, and then for January and February. (must use a formula/calculation in each cell) December, ending inventory: January, ending inventory: February, ending inventory:
| Hank Manufacturing makes cleaning solvent sold in large container with a plastic liner. Their monthly sales forecast consists of: January 40,000 units, February 38,500 units, and March 39,750 units. Desired ending inventory of finished goods (in units) is 10% of the next month's sales forecast. | ||||||||
| Planned production (in units) for next quarter is: | ||||||||
| January | 43,800 | units | ||||||
| February | 41,000 | units | ||||||
| March | 50,250 | units | ||||||
| Further, each container of cleaning solvent consists of: | ||||||||
| 6 | gallons of chemicals | |||||||
| 1 | plastic liner | |||||||
| Company policy requires that ending inventories of raw materials for each month be 15% of the next month's production needs. The policy was met for the ending inventory of December in the prior year. The cost of one gallon of chemicals is $2.00. The cost of one liner is $1.60. | ||||||||
| 1. Calculate the ending inventory of chemicals (in gallons) for December of the prior year, and then for January and February. (must use a formula/calculation in each cell) | ||||||||
| December, ending inventory: | ||||||||
| January, ending inventory: | ||||||||
| February, ending inventory: | ||||||||
| 2. Calculate the ending inventory of plastic coating (in units) for December of the prior year, and then for January and February. (must use a formula/calculation in each cell) | ||||||||
| December, ending inventory: | ||||||||
| January, ending inventory: | ||||||||
| February, ending inventory: | ||||||||
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Social Statistics For A Diverse Society
Authors: Chava Frankfort Nachmias, Anna Leon Guerrero
7th Edition
9781483333540
