Greener Grass Fertilizer Company plans to sell 200,000 units of finished product in July and anticipates...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Greener Grass Fertilizer Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 4 percent per month. The desired monthiy ending inventory in units of finished product is 80 percent of the next month's estimated sales. There are 160,000 finished units in inventory on June 30. Each unit of finished product requires 6 pounds of raw material at a cost of $1.65 per pound. There are 780,000 pounds of raw material in inventory on June 30. Required: 1. Compute the company's total required production in units of finished product for the entire three-month period ending September 30. (Round all intermediate calculations and your final answer to the nearest unit.) 2. Independent of your answer to requirement 1, assume the company plans to produce 720.000 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. 1. Total required production in units 2 Total estimated cost Greener Grass Fertilizer Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 4 percent per month. The desired monthiy ending inventory in units of finished product is 80 percent of the next month's estimated sales. There are 160,000 finished units in inventory on June 30. Each unit of finished product requires 6 pounds of raw material at a cost of $1.65 per pound. There are 780,000 pounds of raw material in inventory on June 30. Required: 1. Compute the company's total required production in units of finished product for the entire three-month period ending September 30. (Round all intermediate calculations and your final answer to the nearest unit.) 2. Independent of your answer to requirement 1, assume the company plans to produce 720.000 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. 1. Total required production in units 2 Total estimated cost
Expert Answer:
Answer rating: 100% (QA)
Ans Sale Prndget O daber August 2o0000 X 04 205000 Septembe 208000 X 04 216320 July S... View the full 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
-
Greener Grass Fertilizer Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units...
-
San Fernando Fertilizer Company plans to sell 40,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units of...
-
A diversified company plans to sell a division as part of a restructuring program. The division to be sold is a regional airline that was acquired by a previous management. The finance department has...
-
The jet plane starts from rest at s = 0 and is subjected to the acceleration shown. Determine the speed of the plane when it has traveled 1000 ft. Also, how much time is required for it to travel...
-
Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes). Required 1. Compute times interest earned for Ellis Company. 2. Compute...
-
What are the possible outcomes on each trial of this computer simulation?
-
According to a survey, the probability that an adult chosen at random watches a movie every day is about 0.60. Classify the statement as an example of classical probability, empirical probability, or...
-
Jaime Baldwin owns and operates Love Transport Co. During the past year, Jaime incurred the following costs related to an 18-wheel truck: 1. Changed engine oil. 2. Installed a wind deflector on top...
-
What is the maximum axial force that can be applied to a part if the cross-sectional area is given as A = 0.05 cm2 , n=2 and tensile strength is given as 100 MPa.
-
A skydiver weighs 125 pounds, and her parachute and equipment combined weigh another 35 pounds. After exiting from a plane at an altitude of 15,000 feet, she waits 15 seconds and opens her parachute....
-
How can you use goal setting to increase motivation and improve job performance?
-
A local factory has two shifts: day shift and night shift. The day shift produces 2/3 of the total product. Of the day shift product, 1 % are defective. Of the night shift product, 2 % are defective....
-
A baseball player has a lifetime batting average of .3. During a game, he has 5 at bats. A student of statistics argues that his chance of going 5 for 5 is (.3) 5 . Do you agree? What assumption does...
-
In which of the following sets are the two events independent? In which are they mutually exclusive? In which are they neither? (a) The Detroit Pistons win the NBA champion ship and the Oakland As...
-
Suppose that P(E 1 ) = 0.3 and P(E 2 ) = 0.4. Obtain and P(E UE), PE E),
-
Consider growth diagnostics. Constraint categories are the boxes from which no further arrows emanate. Can you think of a fundamental constraint not included in the ten end boxes? (That is, an...
-
What is the purpose of adding coatings to cutting tool materials? a ) ) To increase tool hardness b ) ) To improve thermal conductivity c ) ) To enhance wear resistance d ) ) To reduce tool vibration
-
You are maintaining a subsidiary ledger account for Police-Training Expenditures for 2013. The following columns are used: Inventory purchases are initially recorded as expenditures. Record the...
-
Distinguish between the following two types of capital-budgeting decisions: acceptance-or-rejection decisions and capital-rationing decisions?
-
Chillicothe Meat Company produces one of the best sausage products in southern Ohio. The company's controller used the account-classification method to compile the following information. a....
-
Give an example of a noncash expense. What impact does such an expense have in a capital-budgeting analysis? Explain how to compute the after-tax impact of a noncash expense.
-
Victoria has studied the information you gave her in that exercise and has come to you with more statements about corporations. 1. Corporation management is both an advantage and a disadvantage of a...
-
Which of the following is true? a. In the United States, the primary corporate shareholders are financial institutions. b. Share capital means total assets under GAAP. c. Under both IFRS and GAAP,...
-
The following terms pertain to the forming of a corporation: (1) charter, (2) by-laws, and (3) organization costs. Explain the terms.
Study smarter with the SolutionInn App