solving for units produced and material requirements.Jamison company expects to

Question

solving for units produced and material requirements.Jamison company expects to sell 42000 units of finished goods during the next three-month period.The company has 22000 units of finished goods on hand at the beginning of the three-month period and wishes to have an inventory of 24000 units at the end of the three-month period. To produce one unit of finished goods require four units of raw materials.The company has 100000 units of raw materials on hand at the beginning of the three-month period and wishes to have an inventory of 110000 units of raw materials on hand at the end of the three-month period.The company does not have, nor will it have work-in-process inventory.How many units of raw materials must the Jamison company purchase during the three-month period?

Explanation / Answer

ore:colspan'>Any other combination has a lower NPV with limiting investment   

Finished goods produced during the 3 month period closing inventory 24000 units Add : Expected sales 42000 units Total units required 66000 Less ; opening inventory 22000 Production required of finished goods 44000 Raw material required per unit 4 units Total raw material required 176000 Add : closing inventory of raw material 110000 Total raw material requirement 286000 Less ; opening inventory oof Raw material 100000 Raw material purchase for 3 months 186000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.