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qwelly [4]
3 years ago
10

The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 70 percent of the next mo

nth's sales. It is currently estimated that there will be 4,200 units on hand at the end of August. Calculate the number of units to be produced in each of the months of September, October, and November.

Business
1 answer:
Dahasolnce [82]3 years ago
7 0

Answer:

\left[\begin{array}{ccccc}& &September&October&November\\&$sales&6000&6800&5600\\&$Desired ending&4760&3920&4270\\&$Total Needs&10760&10720&9870\\&$beginning&4200&4760&3920\\&$Production Requirement&6560&5960&5950\\\end{array}\right]

MISSING INFORMATION ATTACHED

Explanation:

\left[\begin{array}{ccccc}& &September&October&November\\&$sales&6000&6800&5600\\&$Desired ending&4760&3920&4270\\&$Total Needs&10760&10720&9870\\&$beginning&4200&4760&3920\\&$Production Requirement&6560&5960&5950\\\end{array}\right]

The sales forecasted plus the desired ending inventory is the complete needs the sales department expect to be fullfill

Then, as the company has a beginning invneotry each period a portion of this needs is already fullfil thus, the difference are the production requirements.

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Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $22,400 $19,600 $42,000 Sales value at split-off point $32,000 $28,000 $60,000 Costs of further processing $11,600 $25,300 $36,900 Sales value after further processing $44,800 $53,200 $98,000 Required: (a) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?

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Net advantage from further processing  $1,200<u> </u>

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A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  

Also note that all the joint costs incurred up to the split-off point are irrelevant to the decision to process further any of the .

Net monetary advantage of product X

                                                                                              $

Sales revenue after the split-off point                          44,800

Sales revenue at the split-off point                             <u>  (32,000)</u>

Additional sales revenue                                                  12,800

Further processing cost                                                    <u>(11,600)</u>

Net advantage from further processing                         <u>     1,200 </u>

Net advantage from further processing  $1,200<u> </u>

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