HW Quiz Week 6
1. Alpha manufactures chairs, and each requires 4 board feet of lumber. Alpha
expects that 1,500 and 1,700 chairs will be built in April and May, respectively. Alpha
keeps lumber on hand at 40% of the next month's production needs. Use this
information to determine number board feet of lumber that Alpha Company: (Round &
enter final answers to: the nearest whole dollar for total dollar answers, nearest
penny for unit costs or nearest whole number for units.)
1. should buy in April $6,320
2. have for desired March ending raw material inventory $2,400
March April May
Schedule Production --- 1,500 1,700
RM per Unit --- 4 ft 4 ft
Total RM needed --- 6,000 6,800
Plus: Desired ERM Inventory 2,400 2,720
Total Units RM Required 8,720
Units Beginning Rm 2,400
Net RM purchases 6,320
2. Alpha company makes units that each requires 2 pounds of material at $3 per
pound. Alpha is planning that 500 and 700 units will be built in May and June,
respectively. Alpha keeps material on hand at 20% of the next month's production
needs. Use this information to determine: (Round & enter final answers to: the
nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest
whole number for units)
1. Raw Material Costs for May's Production 3,000
2. Total Cost of May's Raw Materials Purchases $3,240
April May June
, Schedule Production --- 500 700
RM per Unit --- 2 lbs. 2 lbs.
Total RM needed --- 1,000 1,400
Plus: Desired ERM Inventory 280
Total Units RM Required 1,280
Less Beginning RM Inventory 200
Net RM Purchases 1,080
Unit Costs $3
Total cost of RM purchases 3,240
1,000 x 3 = 3,000
3. Alpha company anticipated unit sales of widgets are January, 5,000; February,
4,000; and March 8,000. Alpha consistently maintained finished goods inventory at
80% of the following month's sales. The historic total unit cost has been $10 for each
unit produced. Use this information to determine the total cost of completed
production for: (Round & enter final answers to: the nearest whole dollar for total
dollar answers, nearest penny for unit costs or nearest whole number for units)
1. January $42,000
2. February $72,000
Production Budget
Dec Jan Feb Mar
Estimated units to be sold --- 5,000 4,000 8,000
Desired end FGI 4,000 3,200 6,400
Total units needed 8,200 10,400
Less Beginning FGI 4,000 3,200
Schedule Production 4,200 7,200
Cost per unit produced $10 $10
Total Production Cost $42,000 $72,000
1. Alpha manufactures chairs, and each requires 4 board feet of lumber. Alpha
expects that 1,500 and 1,700 chairs will be built in April and May, respectively. Alpha
keeps lumber on hand at 40% of the next month's production needs. Use this
information to determine number board feet of lumber that Alpha Company: (Round &
enter final answers to: the nearest whole dollar for total dollar answers, nearest
penny for unit costs or nearest whole number for units.)
1. should buy in April $6,320
2. have for desired March ending raw material inventory $2,400
March April May
Schedule Production --- 1,500 1,700
RM per Unit --- 4 ft 4 ft
Total RM needed --- 6,000 6,800
Plus: Desired ERM Inventory 2,400 2,720
Total Units RM Required 8,720
Units Beginning Rm 2,400
Net RM purchases 6,320
2. Alpha company makes units that each requires 2 pounds of material at $3 per
pound. Alpha is planning that 500 and 700 units will be built in May and June,
respectively. Alpha keeps material on hand at 20% of the next month's production
needs. Use this information to determine: (Round & enter final answers to: the
nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest
whole number for units)
1. Raw Material Costs for May's Production 3,000
2. Total Cost of May's Raw Materials Purchases $3,240
April May June
, Schedule Production --- 500 700
RM per Unit --- 2 lbs. 2 lbs.
Total RM needed --- 1,000 1,400
Plus: Desired ERM Inventory 280
Total Units RM Required 1,280
Less Beginning RM Inventory 200
Net RM Purchases 1,080
Unit Costs $3
Total cost of RM purchases 3,240
1,000 x 3 = 3,000
3. Alpha company anticipated unit sales of widgets are January, 5,000; February,
4,000; and March 8,000. Alpha consistently maintained finished goods inventory at
80% of the following month's sales. The historic total unit cost has been $10 for each
unit produced. Use this information to determine the total cost of completed
production for: (Round & enter final answers to: the nearest whole dollar for total
dollar answers, nearest penny for unit costs or nearest whole number for units)
1. January $42,000
2. February $72,000
Production Budget
Dec Jan Feb Mar
Estimated units to be sold --- 5,000 4,000 8,000
Desired end FGI 4,000 3,200 6,400
Total units needed 8,200 10,400
Less Beginning FGI 4,000 3,200
Schedule Production 4,200 7,200
Cost per unit produced $10 $10
Total Production Cost $42,000 $72,000
