Flower\'s Inc. have developed the following sales forecasts for the next few mon

Question

Flower's Inc. have developed the following sales forecasts for the next few months. January 800, February 400, March 600, April 200 and May 50. Flower's Inc. have 80 headsets on hand on Dec. 31. Normal ending inventory policy is to hold 35% of next month's sales. Each headset needs 9 yards of wire and three grams of glitter. Wire is budgeted to cost $10 per yard and glitter $9 per gram. Direct labor is paid $14 per hour. Each headset takes 45 minutes to hand-finish. Variable overheads total S19 per direct labor hour. Fixed overheads amount to $15,000 per month 40 yards of wire and 5 grams of glitter were in stock at year-end i 5% and 10% of next month's glitter and wire needs respectively are planned for raw materials ending inventory each month. How many bears must be produced in March and April?

Explanation / Answer

Production in march and april :

March April Sales 600 200 Add: Desired ending inventory 70 18 Total 670 218 Less: Beginning inventory -210 -70 Unit to be produced 460 148

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.