ezto.mheducation.com SecuriCorp Operates A Fleet Of Armored Cars Chapter 9 Homew
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ezto.mheducation.com SecuriCorp Operates A Fleet Of Armored Cars Chapter 9 Homework Chapter 8 Homework Chegg Study | Guided Solutions and Study H 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 a. The finished goods inventory on hand at the end of each month must be equal to 3,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 13,250 units b. 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 60,000 cc of solvent H300. c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows. Budgeted Sales in Units 41,000 46,000 56,000 36,000 26,000 16,000 July August October November December Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October Pearl Products Limited Production Budget July AugustSeptember October Budgeted unit sales Total needs Required production in unitsExplanation / Answer
ADD: Closing inventory to maintain (In units)
[3000 + 25% of next month sales]
14,500
[3000 + (46,000 x 25%)]
17,000
[3000 + (56,000 x 25%)]
12,000
[3000 + (36,000 x 25%)]
9,500
[3000 + (26,000 x 25%)]
13,250
[3000 + (41,000 x 25%)]
14,500
[closing inventory of previous month]
17,000
[closing inventory of previous month]
12,000
[closing inventory of previous month]
Pearl Products Limited Production Budget for Supermix July August September October Budgeted sales (In units) 41,000 46,000 56,000 36,000ADD: Closing inventory to maintain (In units)
[3000 + 25% of next month sales]
14,500
[3000 + (46,000 x 25%)]
17,000
[3000 + (56,000 x 25%)]
12,000
[3000 + (36,000 x 25%)]
9,500
[3000 + (26,000 x 25%)]
Total needs 55,500 63,000 68,000 45,500 LESS: opening finished goods stock (In units)13,250
[3000 + (41,000 x 25%)]
14,500
[closing inventory of previous month]
17,000
[closing inventory of previous month]
12,000
[closing inventory of previous month]
Required production (In units) 42,250 48,500 51,000 33,500Related Questions
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