Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Casings Plant of Wyoming Machines makes plastics shells for the companys calculators. (Each calculator requires one shell.) For each of the next two years,

The Casings Plant of Wyoming Machines makes plastics shells for the companys calculators. (Each calculator requires one shell.) For each of the next two years, Wyoming expects to sell 610,000 calculators. The beginning finished goods inventory of shells at the Casings Plant is 80,000 units. However, the target ending finished goods inventory for each year is 20,000 units.

Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 230,000 ounces of plastic are in inventory. Management has set a target to have plastic on hand equal to three months sales requirements. Sales and production take place evenly throughout the year.

Required:

a. Compute the total targeted production of the finished product for the coming year.

b. Compute the required amount of plastic to be purchased for the coming year. (Do not round intermediate calculations.)

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

Step: 3

blur-text-image

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

Introduction To Managerial Accounting

Authors: Peter C. Brewer, Ray H. Garrison, Eric W. Noreen

2nd Edition

0072922990, 9780072922998

More Books

Students also viewed these Accounting questions

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago