Use the following to answer questions 56-57: Hamway Products, Inc. makes and sel

Question

Use the following to answer questions 56-57: Hamway Products, Inc. makes and sells a single product called a Wob. It takes two yards of material A to make one Wob. Budgeted production of Wobs for the next four months is as follows: April ................ 12,000 units May ................. 13,500 units June ................. 12,400 units July .................. 11,200 units The company wants to maintain monthly ending inventories of material A equal to 10% of the following month's production needs. On March 31 this target had not been met since only 1,500 yards of material A were on hand. The cost of material A is $.90 per yard. 56. The total cost of material A to be purchased in April is: A) $22,680 B) $24,750 C) $26,750 D) $26,780 Answer: A Level: Medium LO: 4 57. The desired ending inventory of material A for the month of June is A) 2,480 yards B) 1,120 yards C) 1,870 yards D) 2,240 yards Answer: D Level: Easy LO: 4 I have no idea how to get those answers I used this method to solve those questions Require production Raw materials per unit Production needs Add desired ending inventory Total needs Less begining inventory Raw materilas to be purchased Cost of Raw materials to be purchased at $0.90 per unit Thank you

Explanation / Answer

Month Units Opening Inventory Ending Inventory Material Reqd. per yard total cost April 12000 1500 1350 12150 90 1093500 May 13500 1350 1240 13610 90 1224900 June 12400 1240 1120 12520 90 1126800 July 11200 1120 0 12320 90 1108800 Please consider the time devoted to make this reply by rating this as 5 star. Thank u in advance. God bless u :)

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