Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help with number 2 please! Greener Grass Fertilizer Company plans to sell 290,000 units of finished product in July and anticipates a growth rate
need help with number 2 please!
Greener Grass Fertilizer Company plans to sell 290,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units of finished product is 85 percent of the next month's estimated sales. There are 246,500 finished units in inventory on June 30. Each unit of finished product requires 6 pounds of raw material at a cost of $1.95 per pound. There are 870,000 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 three-month 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 640,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw- material purchases for the entire three-month period ending September 30. 953,079 Total required production in units 2. Total estimated cost
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