GreenThumb Organic Fertilizer Company plans to sell 220,000 units of finished product in July and anticipates a growth rate in sales of 4 percent per month. The desired monthly ending inventory in units of finished product is 75 percent of the next month's estimated sales. There are 165,000 finished units in inventory on June 30. Each unit of finished product requires 4 pounds of raw material at a cost of $1.95 per pound. There are 740,000 pounds of raw material in inventory on June 30. Required: 1. Compute the company's total required production in units of finished product for the entire three-month period ending September 30. Note: Round all intermediate calculations and your final answer to the nearest unit. 2. Independent of your answer to requirement 1, assume the company plans to produce 780,000 units of finished product in the three- month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month period ending September 30. 1. Total required production in units 2. Total estimated cost $ 700,216 6,162,000

Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 525,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 550,000 units, and, in year 2, it expects to sell 684,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. However, because of production issues, the ending inventory in the current year (year 0) is expected to be only 14,500 units. Each unit requires 0.5 pound of cork. At the end of the current year (year 0), management expects to have 20,000 pounds of cork in inventory. Management has set a target to have cork on hand equal to one half of next month’s sales requirements during the coming year (year 1). Sales and production take place evenly throughout the year. Required: Compute the total targeted production of the finished coaster for the coming year. Compute the required amount of cork to be purchased for…

Techno Gadgets Corp. produces​ J-Pods, music players that can download thousands of songs. Techno Gadgets forecasts that demand in 2020 will be 19,800 ​J-Pods. The variable production cost of each​ J-Pod is $55. In its MRP​ system, due to the large $17,600 cost per​ setup, Techno Gadgets plans to produce​ J-Pods once a month in batches of 1,650 units. The carrying cost of a unit in inventory is $16 per year.   Read the requirements LOADING... .         Question content area bottom Part 1   Requirement 1. Using the MRP​ system, what is the annual cost of producing and carrying​ J-Pods in​ inventory? (Assume​ that, on​ average, half of the units produced in a month are in​ inventory.)   Begin by determining the​ formula, then calculate the annual cost of producing and carrying​ J-Pods in​ inventory, using an MRP system. ​(Round your answer to the nearest whole​ dollar.)               Cost of producing Total variable production cost + Total setup cost…

Ben Company has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units. Sales totaled 16,000 units in March. The end of April finished goods inventory was 4,800 units. End-of-month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. The unit to be produced for May is: A. 29,600 units. B. 28,800 units. C. 24,000 units. D. 24,800 units.