The Wyoming Machines Housing Plant manufactures plastic housings for the company's calculators. (Each calculator requires a case.)
Question:
The Wyoming Machines Housing Plant manufactures plastic housings for the company's calculators. (Each calculator requires a case.) For each of the next two years, Wyoming expects to sell 640,000 calculators. The beginning inventory of finished shell products at the Casings Plant is 90,000 units. However, the target ending inventory of finished goods 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 goal of having plastic on hand equal to three months' sales requirements. Sales and production are carried out evenly throughout the year.
Required:
to. Calculate the total target production of the finished product for the coming year.
Total target production in units | 570.000 |
b. Calculate the required amount of plastic to be purchased for the next year. (Do not round intermediate calculations.)
Materials to buy in ounces | ? |
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher