Question

In: Accounting

germ D chemicals has 40, 000 pounds of krypton in inventory at the beginning of August....

germ D chemicals has 40, 000 pounds of krypton in inventory at the beginning of August. The company plans to produce 6000 rack joint made from Krypton in August. If each rack joint requires 30 pounds of Krypton and germ D wants 50,000 pounds of krypton in inventory at the end of August how many pounds of krypton should the company plan to purchase in August?

Solutions

Expert Solution

Answer)

Calculation of pounds of Krypton that the company should purchase in the month of August

Quantity of Krypton to be purchased = Quantity of Krypton required to produce 6,000 rack joint + Desired ending inventory of Krypton – Beginning inventory of Krypton

                                                               = 180,000 pounds + 50,000 pounds – 40,000 pounds

                                                               = 190,000 pounds

Therefore the company should purchase 190,000 pounds of Krypton in the month of August.

Working Note:

Calculation of Quantity of Krypton to be purchased

Total quantity of Krypton to be purchased = Quantity of Krypton required per rack joint X Number of rack joints budgeted to be produced in August

                                                                                   = 30 pounds X 6,000 rack joints

                                                                                    = 180,000 pounds

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Thorton Co. reported the following data at year end. Sales, $500 000; beginning inventory,$40 000; ending...
Thorton Co. reported the following data at year end. Sales, $500 000; beginning inventory,$40 000; ending inventory, $45 000; cost of goods sold, $350 000; and gross margin, $150 000. What was the amount of merchandise purchased during the year? $370 000 $355 000 $348 000 $341 000 None of the above If a current ratio has been increasing over the past several years, which of these would cause the ratio to rise? A decrease in accounts payable An increase...
On August 1st, Electronics Mart had a beginning inventory of 40 MP3 players which it purchased...
On August 1st, Electronics Mart had a beginning inventory of 40 MP3 players which it purchased for $50 each. On August 10th, the company purchases 20 more MP3 players for $55 each. None were sold that week. On August 15th, the company purchases 30 more MP3 players for $60 each. Between August 16th and 31st, Electronics Mart sells 70 of the MP3 players. a.) Calculate Electronics Mart’s Ending Inventory Balance (in dollars) at the end of August and Cost of...
beginning inventory, purchases and sales data for the month of august are as follows beginning inventory...
beginning inventory, purchases and sales data for the month of august are as follows beginning inventory 10 units @ 25 august 5 sale 5 units august 10 purchase 18 units @ 27 august 12 sale 13 units August 27 purchase 10 units @ 30 assuming the business maintains a perpetual inventory system, calculate the cost of goods sold and Ending inventory using FIFO, LIFO , Weighted Average
On August 1st, Verizon Cell Phone Company had a beginning inventory of 40 Samsung Model X...
On August 1st, Verizon Cell Phone Company had a beginning inventory of 40 Samsung Model X phones which it purchased for $150 each. On August 10th, the company purchases 20 more phones for $155 each. None were sold that week. On August 15th, the company purchases 30 more phones for $160 each. Between August 16th and 31st, Horizon sells 70 of the Model X phones. 1.) Calculate Horizon’s Ending Inventory Balance (in dollars) at the end of August and Cost...
Joy Co.'s recorded inventory information for the month of August is as follows: Beginning Inventory 22...
Joy Co.'s recorded inventory information for the month of August is as follows: Beginning Inventory 22 units at $15 each First Purchase 25 units at $18 each Second Purchase 21 units at $20 each Sales 48 units a. Determine the total cost of ending inventory according to FIFO method. $ b. Determine the total cost of ending inventory according to LIFO method. $
Joy Co.'s recorded inventory information for the month of August is as follows: Beginning Inventory 22...
Joy Co.'s recorded inventory information for the month of August is as follows: Beginning Inventory 22 units at $15 each First Purchase 25 units at $18 each Second Purchase 21 units at $20 each Sales 48 units a. Determine the total cost of ending inventory according to FIFO method. $ b. Determine the total cost of ending inventory according to LIFO method. $
Conlon Chemicals manufactures paint thinner. Information on the work in process follows: • Beginning inventory, 39,000...
Conlon Chemicals manufactures paint thinner. Information on the work in process follows: • Beginning inventory, 39,000 partially complete gallons. • Transferred out, 212,000 gallons. • Ending inventory (materials are 21 percent complete; conversion costs are 12 percent complete). • Started this month, 241,000 gallons. Assume that beginning inventory is 50 percent complete with respect to materials and 32 percent complete with respect to conversion costs Required: a. Compute the equivalent units for materials using FIFO. b. Compute the equivalent units...
Conlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory, 36,000 partially...
Conlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory, 36,000 partially complete gallons. Transferred out, 206,000 gallons. Ending inventory (materials are 20 percent complete; conversion costs are 12 percent complete). Started this month, 244,000 gallons. Assume that beginning inventory is 50 percent complete with respect to materials and 32 percent complete with respect to conversion costs. Required: a. Compute the equivalent units for materials using FIFO. b. Compute the equivalent units for conversion costs using...
1. Conlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory, 37,000...
1. Conlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory, 37,000 partially complete gallons. Transferred out, 209,000 gallons. Ending inventory (materials are 19 percent complete; conversion costs are 11 percent complete). Started this month, 236,000 gallons. Assume that beginning inventory is 50 percent complete with respect to materials and 32 percent complete with respect to conversion costs. Required: a. Compute the equivalent units for materials using FIFO. b. Compute the equivalent units for conversion costs...
Conlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory, 30,000 partially...
Conlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory, 30,000 partially complete gallons. Transferred out, 157,500 gallons. Ending inventory (materials are 10 percent complete; conversion costs are 20 percent complete). Started this month, 180,000 gallons. Assume that beginning inventory is 50 percent complete with respect to materials and 30 percent complete with respect to conversion costs. Required: a. Compute the equivalent units for materials using FIFO. b. Compute the equivalent units for conversion costs using...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT