In manufacturing its products, a company uses three raw materials A,B and C as follows: Raw Usage Reorder Price Delivery period in weeks Order Minimum materials per unit level quantity per kg. $ level A 10 1 to 2 10,000 5,000 10,000 10 8,000 4,750 B 4 30 3 to 5 6 15 2 to 4 2,000 Weekly production varies from 175 to 225 units, averaging 200. What would you expect the quantities of the following to be? (1) (I1) (III) Minimum stock of A; Maximum stock of B; and Average stock of A;

In manufacturing its products, a company uses three raw materials A,B and C as follows: Raw Usage Reorder Price Delivery period in weeks Order Minimum materials per unit level quantity per kg. $ level A 10 1 to 2 10,000 5,000 10,000 10 8,000 4,750 B 4 30 3 to 5 6 15 2 to 4 2,000 Weekly production varies from 175 to 225 units, averaging 200. What would you expect the quantities of the following to be? (1) (I1) (III) Minimum stock of A; Maximum stock of B; and Average stock of A;

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 21E: The Converting Department of Tender Soft Tissue Company uses the weighted average method and had...

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The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
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