Problem 4

Production for delivery on November sales must be performed In September and October with all materials available on September 1. The material to meet September production requirements are to be purchased in August. Five units of a material are_needed to produce each unit of finished goods. The inventory of this material on August 1 was 70,000 units. By the end of august, the material inventory is to be increases 100,000 units. The finished goods inventory is to be increaseld by 25000 units after making making the allowance for the November sales requirement.The company plans to sell 650,000 units of product in November.

Required: compute the august purchases to meet the requirement for September and October.

Problem 5.

AAA Company plans to sell 300,000 units of product inJuly. Production in June is planned to meet this requirement along with a provision to increase finished goods inventory by 60,000 unitsduring June. Three units of materialare required In the production of each unit of product. There are losses in production, and only 90% of the materials placed in production result In satisfactory products. Each unit of material costs $1.00. the material inventory is planned 40,000 units on May 1 and is pIanned at 50,000 units on May 31.

Required: Compute cost of materials to be purchased in May.

Problem 6. Jack a furniture manufacturer received an order for 50 chairs. Because of the order's exacting specification, it is anticipated that defective and spoiled work will exceed the normal rate. The material cost per unit is $80, labor cost $194 and normally the company applied factory overhead at 102% of the labor cost.(inclusive of 2% allowance) During production, 10 units were found defective and required the following total additional cost. Materials, $97 labor, and labor and factory overhead $125. On final inspection, 2 units were classified as seconds and sold for $400 each, the proceeds being credited to the order. The purchaserhas agreed to accept the48 tables, although the acceptable units were fewer than the number ordered.

Required: Compute the unit cost of the completed tables.