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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 640,000 calculators. The beginning finished goods Inventory of shells at the Casings Plant is 70,000 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, 210,000 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. b. Compute the required amount of plastic to be purchased for the coming year. (Do not round Intermediate calculations.) a. Total targeted production in units Materials to be purchased in ounces b.

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 640,000 calculators. The beginning finished goods Inventory of shells at the Casings Plant is 70,000 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, 210,000 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. b. Compute the required amount of plastic to be purchased for the coming year. (Do not round Intermediate calculations.) a. Total targeted production in units Materials to be purchased in ounces b.

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
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...
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A. Compute the total targeted production of the finished product for the coming year. B. Compute the required amount of plastic to be purchased for the coming year.
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 640,000 calculators. The beginning finished goods Inventory of shells at the Casings Plant Is 70,000 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, 210,000 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. b. Compute the required amount of plastic to be purchased for the coming year. (Do not round Intermediate calculations.) Total targeted production in units Materials to be purchased in ounces a. b.
Transcribed Image Text: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 640,000 calculators. The beginning finished goods Inventory of shells at the Casings Plant Is 70,000 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, 210,000 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. b. Compute the required amount of plastic to be purchased for the coming year. (Do not round Intermediate calculations.) Total targeted production in units Materials to be purchased in ounces a. b.
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