Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 203 are as follows: Yarex Darol Norex 20x2 125,000 85,000 55,000 20x3 135,000 75,000 65,000 Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 7 percent of that year's projected sales. Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year. The raw-material requirements of the three products are shown in the following chart. Raw Material Gamma Units pounds Unit Price Yarex Darol Norex $ 11.00 0.2 0.4 0 Murad Islin Tarden pounds gallons gallons 9.00 0.4 0 0.5 5.00 13.00 1.0 0.7 0.5 0 0.3 0.5 Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 5 percent of the previous year's usage of that raw material. The conversion requirements in hours per gallon for the three products are Yarex, 0.09 hour; Darol, 0.12 hour; and Norex, 0.18 hour. The conversion cost of $10 per hour is considered 100 percent variable. Required: 1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2. 2. Determine Empire Polymer Development's conversion cost budget for 20x2. 3. Assuming the 201 usage of Islin is 210,000 gallons, determine the company's raw-material purchases budget (in dollars) for Islin for 20x2. 4-a. Assume that for 20x2 production, Empire Polymer Development's could replace the raw material Islin with the raw material Philin. The usage of Philin would be the same as the usage of Islin. However, Philin would cost 20 percent more than Islin and would cut production times on all three products by 10 percent. Compare cost of using Philin over using Islin. 4-b. Which raw material should the management use for the 20x2 production? Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 203 are as follows: Yarex Darol Norex 20x2 125,000 85,000 55,000 20x3 135,000 75,000 65,000 Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 7 percent of that year's projected sales. Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year. The raw-material requirements of the three products are shown in the following chart. Raw Material Gamma Units pounds Unit Price Yarex Darol Norex $ 11.00 0.2 0.4 0 Murad Islin Tarden pounds gallons gallons 9.00 0.4 0 0.5 5.00 13.00 1.0 0.7 0.5 0 0.3 0.5 Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 5 percent of the previous year's usage of that raw material. The conversion requirements in hours per gallon for the three products are Yarex, 0.09 hour; Darol, 0.12 hour; and Norex, 0.18 hour. The conversion cost of $10 per hour is considered 100 percent variable. Required: 1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2. 2. Determine Empire Polymer Development's conversion cost budget for 20x2. 3. Assuming the 201 usage of Islin is 210,000 gallons, determine the company's raw-material purchases budget (in dollars) for Islin for 20x2. 4-a. Assume that for 20x2 production, Empire Polymer Development's could replace the raw material Islin with the raw material Philin. The usage of Philin would be the same as the usage of Islin. However, Philin would cost 20 percent more than Islin and would cut production times on all three products by 10 percent. Compare cost of using Philin over using Islin. 4-b. Which raw material should the management use for the 20x2 production?
Expert Answer:
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078110917
9th edition
Authors: Ronald W. Hilton
Posted Date:
Students also viewed these accounting questions
-
Chittagong port of bangladesh and how its helping in import and export of apparels and contributing to the apparel industry. statistical data of how much is exported and imported in great detail
-
Empire Chemical Company produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years...
-
Niagra Chemical Company produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years...
-
Suppose you make beautiful coffee tables out of juniper trees. Your materials cost for each table is $135. You pay your craftsman $25 per hour and it takes him 5 hours to complete one table. If you...
-
A strangle (buy call with K = 30 and buy put with K = 25).
-
For the voltage-divider bias configuration of Fig. 4.115, determine: In Figure 4.115 (a) IC. (b) VE. (c) VCC. (d) VCE. (e) VB. (f) R1. 16 V 3.9 k 62 k CE 9.1 k 0.68
-
Following are ten unrelated situations that would ordinarily be expected to affect one or more standard cost variances: il. Dd, A salaried production supervisor is given a raise, but no adjustment is...
-
The following equity investment-related transactions were completed by Lance Company in 2010: Jan. 12. Purchased 1,800 shares of Baxter Company for a price of $56.50 per share plus a brokerage...
-
adults in a recent year. Construct a frequency distribution that has seven classes. (Adapted Sts the out-of-pocket prescription medicine expenses (in dollars) for 30 U.S. from: Health, United States,...
-
Tofu Corporation has the following information at year end:Accounts receivable $20,000Allowance for Bad Debts $500 (before adjustment)Credit sales for the year $175,000Total sales $200,000.A hist 2...
-
Jack'sScent Shoppe is the name of a sole proprietorship that carries on a retail business. The business has a December 31 fiscal period and began in2023. In its first fiscal period?business, sales...
-
A woman sings at a fifth harmonic frequency of 3036 Hz. Treat her vocal tract as though it were a closed-open end air column and that the speed of sound is 340 m/s. 1) What would be the frequency of...
-
Factor the expression. 6x3/218x1/2 + 12x-1/2
-
Cohen Company's taxable income this year was $47,000. During the year, Cohen received interest on a municipal bond of $4,000. The company had federal income tax of $6,000 and incurred penalties of...
-
The intent of this assignment is to demonstrate that you can evaluate the riskiness of a stock using statistical analysis. An important consideration in investing is not only the expected return, but...
-
Cisco Packet Tracer - C:\Users\User\Desktop\OU\open uni\TSM257\ema\v7DaySchoolBaseNetwork-TM257base 1.pkt File Edit Options View Tools Extensions Window Help FA 7QQQ Q = = Q Logical Physical) x: 558,...
-
A Bloomberg Businessweek subscriber study asked, In the past 12 months, when traveling for business, what type of airline ticket did you purchase most often? A second question asked if the type of...
-
Name the various components of a measurement system.
-
Kemico Ltd manufactures a variety of chemicals which it supplies in bulk to industrial customers. Its factory at Gritborough employs 50 people, and its annual turnover in 1995 was 7.5M. During 1995,...
-
Define the term measurement.
Study smarter with the SolutionInn App