The Casings Plant of Wyoming Machines makes plastics shells for the company’s ca

Question

The Casings Plant of Wyoming Machines makes plastics shells for the company’s calculators. (Each calculator requires one shell.) For each of the next two years, Wyoming expects to sell 680,000 calculators. The beginning finished goods inventory of shells at the Casings Plant is 90,000 units. However, the target ending finished goods inventory for each year is 25,000 units.

The Casings Plant of Wyoming Machines makes plastics shells for the company's calculators. (Each calculator requires one shell.) For each of the next two years, Wyoming expects to sell 680,000 calculators. The beginning finished goods inventory of shells at the Casings Plant is 90,000 units. However, the target ending finished goods inventory for each year is 25,000 units. Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 280,000 ounces of plastic are in inventory. Management has set a target to have plastic on hand equal to four 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. Total targeted production in units b. Compute the required amount of plastic to be purchased for the coming year. (Do not round intermediate calculations.) Materials to be purchased in ounces

Explanation / Answer

a Total targeted production = 680000+25000-90000= 615000 b Budgeted production 615000 Ounces per unit 6 Total materials for production 3690000 Add: Ending inventory 1360000 Total materials needed 5050000 Less: Beginning inventory 280000 Materials to be purchased 4770000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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