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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Parwin Corporation plans to sell 39,000 units during August. If the company has 16,000 units on hand at the start of the month, and plans to
have 17,000 units on hand at the end of the month, how many units must be produced during the month?
Mutiple Choice
40,000
38,000
56,000
55,000
Expert Solution
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- SOLVE USING EXCEL Chapman Pharmaceuticals, a large manufacturer of drugs, has this aggregate demand forecast (in thousands of liters) for a liquid cold medicine. Month January February March April May June Demand 200 120 75 40 15 7 The firm has a normal production rate of 90 thousand liters per month, and the initial inventory is 100 thousand liters. Inventory holding costs are $30 per 1,000 liters per month, regular-time production costs are $400 per 1,000 liters. Overtime costs an additional 20 percent, and undertime costs an additional 12 percent. Assume that there are no lost sales or rate change costs. Compute and compare the total cost of a level production rate of 90 thousand liters per month and a chase demand production plan.arrow_forwardplease solve all requirementsarrow_forwardanswer in text form please (without image)arrow_forward
- Wisdom Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month? O 24,000 O 22,000 O 32,000 O 31,000arrow_forwardThe Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: Number of foam cushions to be produced in July 13,000 Number of foam cushions to be produced in August 19,000 Number of foam cushions to be produced in September 12,000 Each cushion requires 2 pounds of the foam used as stuffing. The Company has a policy that the ending inventory of foam each month must be equal to 30% of the following month's expected production needs. How many pounds of foam does the Company need to purchase in August?arrow_forwardAaron's chairs is in the process of preparing a production costbudget for August. Actual costs in July for 120 chairs were:Materials cost $4,730Labor cost 2,940Rent 1,500Depreciation 2,500Other fixed costs 3,200Materials and labor are the only variable costs. If productionand sales are budgeted to change to 120 chairs in August,how much is the expected total variable cost on the Augustbudget?arrow_forward
- Pridgeon Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month? O 24,000 O 22,000 O 32,000 O 31,000arrow_forwardCompany sells a product for $90.00 per unit. Variable costs are $50 per unit, and fixed costs are $1,000 per month. The company expects to sell 600 units in September. The Contribution Margin Ratio is O 44% O 42% O 46% O 40% gs O 48%arrow_forwardOak Industrial has estimated that production for the next five quarters will be:. Production Information 1st quarter, 2020 44,100 units 2nd quarter, 2020 40,000 units 3rd quarter, 2020 48,200 units 4th quarter, 2020 37,600 units 1st quarter, 2021 45,700 units Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $277,830 of raw material on hand at the beginning of the first quarter, 2020. Oak desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter.Prepare quarterly direct materials purchases budgets for Oak Industrial for 2020.arrow_forward
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