Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mkate Ltd. produces chocolate chip cookies. Raw materials inventory includes flour, sugar, and chocolate chips at standard cost of Shs. 20.00 per pound. Mkate
Mkate Ltd. produces chocolate chip cookies. Raw materials inventory includes flour, sugar, and chocolate chips at standard cost of Shs. 20.00 per pound. Mkate Ltd. uses 1/5 of a pound of raw materials per cookie. Mkate Ltd. anticipates quarterly sales as follows: Budgeted Sales, 1st quarter 2021 400,000 Cookies Budgeted Sales, 2nd quarter 2021 500,000 Cookies Budgeted Sales, 3rd quarter 2021 350,000 Cookies Budgeted Sales, 4th quarter 2021 600,000 Cookies Budgeted Sales, 1st quarter 2022 400,000 Cookies Beginning finished goods inventory is 90,000 cookies. Beginning raw materials inventory is 6,000 pounds. Target raw materials = 60% of next quarter's material needs. Target finished goods inventory is 40% of next quarter's sales. What is the forecasted production for the second quarter. 2021?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started