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Pearl Products Limited of Shenzhen, China, manufactures and distributes toys thr

ID: 2346430 • Letter: P

Question


Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:

The finished goods inventory on hand at the end of each month must be equal to 5,000 units of Supermix plus 26% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 14,620 units.

The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 59,400 cc of solvent H300.

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:

Explanation / Answer

33000, 44000 63000 20000 14000 7000 8000 3000 6000 15000 10000 3000 41000 47000 69000 35000 20000 10000 56000 64000 89000 31000 23000 15000 15000 17000 20000 4000 3000 5000 15000 17000 20000 4000 3000 5000 24000 35000 35000 1000 5000 12000 39000 52000 55000 14000 8000 17000 60000 75000 83000 23000 29000 31000 21000 23000 28000 9000 21000 14000

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