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Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 20x3 are as follows: Yarex Darol Norex 20x2 127,000 87,000 57,000 Raw Material Gamma Murad Islin Tarden 20x3 137,000 77,000 67,000 • Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 6 percent of that year's projected sales. Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year. The raw-material requirements of the three products are shown in the following chart. Units pounds pounds gallons gallons Unit Price $ 7.00 5.00 4.00 9.00 Yarex 0.4 0.6 1.2 0 Darol 0.6 0 0.9 0.5 Norex 0 0.7 0.7 0.7 Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 15 percent of the previous year's usage of that raw material. The conversion requirements in hours per gallon for the three products are Yarex, 0.06 hour; Darol, 0.09 hour; and Norex, 0.15 hour. The conversion cost of $20 per hour is considered 100 percent variable. Required: 1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2.

Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 20x3 are as follows: Yarex Darol Norex 20x2 127,000 87,000 57,000 Raw Material Gamma Murad Islin Tarden 20x3 137,000 77,000 67,000 • Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 6 percent of that year's projected sales. Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year. The raw-material requirements of the three products are shown in the following chart. Units pounds pounds gallons gallons Unit Price $ 7.00 5.00 4.00 9.00 Yarex 0.4 0.6 1.2 0 Darol 0.6 0 0.9 0.5 Norex 0 0.7 0.7 0.7 Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 15 percent of the previous year's usage of that raw material. The conversion requirements in hours per gallon for the three products are Yarex, 0.06 hour; Darol, 0.09 hour; and Norex, 0.15 hour. The conversion cost of $20 per hour is considered 100 percent variable. Required: 1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...
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Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 20x3 are as follows: . . . Yarex Darol Norex Raw Material Gamma Murad 20x2 127,000 87,000 57,000 Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 6 percent of that year's projected sales. Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year. The raw-material requirements of the three products are shown in the following chart. Islin Tarden 20x3 137,000 77,000 67,000 Units pounds pounds gallons gallons Unit Price Yarex $ 7.00 0.4 5.00 0.6 4.00 1.2 9.00 0 Darol 0.6 0 0.9 0.5 Norex 0 0.7 0.7 0.7 Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 15 percent of the previous year's usage of that raw material. The conversion requirements in hours per gallon for the three products are Yarex, 0.06 hour; Darol, 0.09 hour; and Norex, 0.15 hour. The conversion cost of $20 per hour is considered 100 percent variable. Required: 1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2.
Transcribed Image Text:Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 20x3 are as follows: . . . Yarex Darol Norex Raw Material Gamma Murad 20x2 127,000 87,000 57,000 Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 6 percent of that year's projected sales. Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year. The raw-material requirements of the three products are shown in the following chart. Islin Tarden 20x3 137,000 77,000 67,000 Units pounds pounds gallons gallons Unit Price Yarex $ 7.00 0.4 5.00 0.6 4.00 1.2 9.00 0 Darol 0.6 0 0.9 0.5 Norex 0 0.7 0.7 0.7 Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 15 percent of the previous year's usage of that raw material. The conversion requirements in hours per gallon for the three products are Yarex, 0.06 hour; Darol, 0.09 hour; and Norex, 0.15 hour. The conversion cost of $20 per hour is considered 100 percent variable. Required: 1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2.
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