Gillman Co. is forecasting sales of 62,000 units of product for August. To make
ID: 2382209 • Letter: G
Question
Gillman Co. is forecasting sales of 62,000 units of product for August. To make one unit of finished product, 5 pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are:
Gillman Co. is forecasting sales of 62,000 units of product for August. To make one unit of finished product, 5 pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are:
(Actual) August 31
(Desired) Raw materials (pounds) 74,700 68,200 Finished goods (units) 5,900 8,300
a. Calculate the number of units of product to be produced during August
b. Calculate the number of pounds of raw materials to be purchased during August.
Explanation / Answer
a. number of units of product to be produced during August =8,300+62,000-5,900 =64400 units
b.number of pounds of raw materials to be used in prodcution =64400*5=322000
number of pounds of raw materials to be purchased during August=322000+68,200-74700=315500 pounds
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.