Use the following to answer questions 8-10 Roberts Company manufactures home cle

Question

Use the following to answer questions 8-10 Roberts Company manufactures home cleaning products. One of the products, Quickclean, requires 2 pounds of Material A and 5 pounds of Material B per unit manufactured. Material A can be purchased from the supplier for $0.30 per pound and Material B can be purchased for $0.50 per pound. The finished goods inventory on hand at the end of each month must be equal to 4,000 units plus 25% of the next month's sales. The raw materials inventory on hand at the end of each month (for either Material A or Material B) must be equal to 80% of the following month's production needs. 1 POINT 8. Assume that on January 1 the inventory of Quickclean was 8,000 units. Expected sales in January are 14,000 units and expected sales in February are 18,000 units. The number of units needed to be manufactured in January would be: A) 10,500 B) 14,000 C) 14,500 D) 15,000

Explanation / Answer

Calculation of Production budget for the month of January Units January February Production Budget (a) Units 14000 18000 Planned ending invetory(b) Units 8500 (4000 + 25% OF 18,000 = 4000 Units + 4,500 untis) Total Production Required (a+b) Units 22500 Less: Opening Inventory Units 8000 Units to Be Manuafatured in month of January = Units 14500 Answer = Option C = 14,500 Units

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

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