The Casings Plant of Wyoming Machines makes plastics shells for the companys calculators. (Each calculator requires one
Question:
Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 60,000 ounces of plastic are in inventory. Management has set a target to have plastic on hand equal to two 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.
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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