Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

REQUIRED: Calculate the number of products that must be produced in February and the amount of materials required to be purchased in February using the

image text in transcribed
REQUIRED: Calculate the number of products that must be produced in February and the amount of materials required to be purchased in February using the following data. Projected Sales: January 30,000 units February 45,000 units March 40,000 units April 17,000 units Desired ending inventory of completed units is 20% of the following month's production. Each product requires 4 feet of material. The desired ending inventory of material is 30% of the next month's production need. a) Number of units to be produced in February. Item January February March April Sales 30,0012 45,000 40,000 17,000 Ending Inventory 91000 8. DOD 3, 400 Total Needed 39,000 / 53, 000 43, 400 Beginning Inventory ( 6,DDO) (9, 000) (8, 000 ) Total Units to be Produced 33 , DDO / 44, 000 35 , 40 0 b) Feet of material to be purchased in February. Item January February March April Total Units to be Produced 33 Doo 44, 020 35, 400 17, 100 Material per Unit 4,00 1:00 4.00 4.00 Total Material Needed for Production 132, 000 176, 800 141, 600 68,600 Ending Inventory 52, 800 42, 480 20 400 Total Need 84,800 218, 480 162,000 Beginning Inventory 39, 600 ) ( $2, 800 ) Total Material Needed 165, 680 units to be produce. in February = 44, 000 Raw material to be purchase = 1651680

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Murray Hilton

6th Edition

0070001537, 978-0070001534

More Books

Students also viewed these Accounting questions

Question

What are the responsibilities of the engaged follower?

Answered: 1 week ago

Question

What are the factors affecting organisation structure?

Answered: 1 week ago

Question

What are the features of Management?

Answered: 1 week ago

Question

Briefly explain the advantages of 'Management by Objectives'

Answered: 1 week ago