Answer:
42,056 pounds
Explanation:
The computation of budgeted raw material purchases is shown below:-
Budgeted unit sale 8,700
Add: desired ending inventory 1,260
(10% × 12,600)
Total needs 9,960
Less: Beginning inventory (870)
(8,700 × 10%)
Production in may 9,090
Pounds for material 4
material for production 36,360
(9,090 × 4)
Add: Desired ending inventory
of raw material 20,240
(50,600 × 40%)
Total needs 56,600
Less: Beginning ending inventory
of raw material (14,544)
(36,360 × 40%)
Raw material purchase 42,056 pounds
Answer:
The answers are:
1. nonprogrammed decision
2. programmed decision
3. nonprogrammed decision
4. programmed decision
Explanation:
Programmed decisions are decisions for which the decision maker has developed certain set of guiding rules for, over time, as a result of repetition. Here the results can be predicted with a reasonable degree of accuracy, because the situations surrounding the circumstances are well known. In our example, feeding the puppy overtime has become routine, hence it is a programmed decision, also, the choice of tea at Starbucks is a programmed decision because you know what to expect and that is because you have tried the other varieties and come to a conclusion on the choices to be made which is well understood.
On the contrary, a nonprogrammed or nonroutine decision is a decision that is based on circumstances that are not entirely predictable to a reasonable extent. The structure of the circumstances surrounding the decision to be made is not well understood. There are so many "what ifs". These decisions can be said to be novel, and they are not routine. In our example, the choice of the constructor to use for your kitchen design and the decision by the accounting firm on whether to renew the lease or relocate are nonprogrammed because these decisions are not everyday decisions and the decision makers are not certain what the outcomes will be depending on the choices they make, if they will eventually regret it or not.
Answer: it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run.
Explanation:
A pure monopoly is referred to as a single supplier of a particular product in an industry. In such market, there no no substitute exists and such firms usually have a large market share.
They are price makers, profit maximizer, discriminate on prices and have a high barriers to entry. Due to their economies of scale, they prevent other sellers from entering the market in the long run.
Answer:
Purchases Quantity = 441075 pounds
Purchases Value = $926257.5
Explanation:
To calculate the quantity and value of the purchases of direct material for the month of January, we first need to determine the quantity of direct material needed for production in January and adjust it with the opening inventory of direct material and the desired closing inventory.
To produce 715000 candles, the wax needed (in pounds) = 715000 * 10/16
To produce 715000 candles, the wax needed (in pounds) = 446875 pounds
The purchases for wax in pounds for January should be,
Consumption = Opening Inventory + Purchases - Closing Inventory
446875 = 18600 + Purchases - 12800
446875 + 12800 - 18600 = Purchases
Purchases = 441075 pounds
The value of Purchases will be = 441075 * 2.1 = $926257.5
