Exercise $9-25$ Budgeting Production and Raw$-$Material Purchases $($LO $9-3,9-6)$

Greener Grass Fertilizer Company plans to sell $240,000$ units of finished product in July and anticipates a growth rate in sales of $6$

percent per month. The desired monthly ending inventory in units of finished product is $75$ percent of the next month's estimated

sales. There are $180,000$ finished units in inventory on June $30.$ Each unit of finished product requires $3$ pounds of raw material at a

cost of $$1\mathrm{.}65$ per pound. There are $740,000$ pounds of raw material in inventory on June $30.$

Required:

Compute the company's total required production in units of finished product for the entire three$-$month period ending September

$($Round all intermediate calculations and your final answer to the nearest unit.$)$

Independent of your answer to requirement $1,$ assume the company plans to produce $600,000$ 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 $30.$Exercise $9-25$ Budgeting Production and Raw$-$Material Purchases $($LO $9-3,9-6)$

Greener Grass Fertilizer Company plans to sell $240,000$ units of finished product in July and anticipates a growth rate in sales of $6$

percent per month. The desired monthly ending inventory in units of finished product is $75$ percent of the next month's estimated

sales. There are $180,000$ finished units in inventory on June $30.$ Each unit of finished product requires $3$ pounds of raw material at a

cost of $$1\mathrm{.}65$ per pound. There are $740,000$ pounds of raw material in inventory on June $30.$

Required:

Compute the company's total required production in units of finished product for the entire three$-$month period ending September

$($Round all intermediate calculations and your final answer to the nearest unit.$)$

Independent of your answer to requirement $1,$ assume the company plans to produce $600,000$ 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 $30.$