Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. greenthumb organic fertilizer company plans to sel

GreenThumb Organic Fertilizer Company plans to sell 230,000 units of finished product in July and...

60.1K

Verified Solution

Question

Accounting

GreenThumb Organic Fertilizer Company plans to sell 230,000 units of finished product in July and anticipates a growth rate in sales of 3 percent per month. The desired monthly ending inventory in units of finished product is 85 percent of the next months estimated sales. There are 195,500 finished units in inventory on June 30. Each unit of finished product requires 6 pounds of raw material at a cost of $1.65 per pound. There are 790,000 pounds of raw material in inventory on June 30.
Required:
Compute the companys 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.
Independent of your answer to requirement 1, assume the company plans to produce 740,000 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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students