Question

In: Accounting

towson company manufactures book cases and each requires 38board feet of lumber.Towson expects that 2000 and1750...

towson company manufactures book cases and each requires 38board feet of lumber.Towson expects that 2000 and1750 book cases will be built in june and july respectively .towson keeps lumber on hand at 35%of the next month's production needs.

use this information to determine number board feet of lumber that towson company shoukd buy in june.round and enter final answers to the nearest whole number.

Solutions

Expert Solution

Based on the information available in the question, we can calculate the number board feet of lumber that Towson company should buy as follows:-

Particulars No.of cases Board feet per case Total
June sales(A)                                   2,000                          38                     76,000
Add:- July sales                                   1,750                          38                       9,975 (1,750 * 38 * 15%)
Less:- Opening Stock(A * 35%) 700 38                     26,600
Units to be purchased 59,375 feet

The number of board feet that towson company should buy in june is 59,375 feet per the calculations above


Related Solutions

Elton fenner expects to receive $2000 at the end of each year for the next two...
Elton fenner expects to receive $2000 at the end of each year for the next two years. Assuming an annual compound interest of 6% what is the present value of these two annual payments? A. 3770 B. 3884 C. 3666 D. 3564
In 2000, the Gandoff Company purchased all of the outstanding stock of Bilbo Company at book...
In 2000, the Gandoff Company purchased all of the outstanding stock of Bilbo Company at book value. Gandoff accounts for its investment in Bilbo under the initial value method and Bilbo pays no dividends In 2016, Gandoff sold inventory to Bilbo Co for $600,000 on credit. This merchandise had cost Gandoff $300,000. At the end of 2016 Bilbo had not sold any of this merchandise nor had they paid Gandoff for the merchandise In 2017 Bilbo paid off Gandoff and...
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot.
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow:  ...
Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 per foot.
Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow:  ...
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot
Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending raw materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow:     ...
the standard to make one pocketbook is that each unit produced requires 1.75 feet of leather...
the standard to make one pocketbook is that each unit produced requires 1.75 feet of leather at a cost of $ 16 per foot. During the month, 34,000 pocketbooks were produced and 61,600 feet of leather was used. The amount of leather purchased for the month was 71,000 feet at a cost of $1,118,250. Materials price Variance 15,400 F Materials Efficiency (Quantity) Variance 33,600U Materials Total Variance 18,200U Materials Purchase Price Variance 17,750 F Question: Come up with a story...
On January 1, 2000 Apple Company acquired all of the stock of Pear Company at book...
On January 1, 2000 Apple Company acquired all of the stock of Pear Company at book value. Apple accounts for its investment in Pear using the initial value method and Pear doesn't pay any dividends. On January 1st 2015 Pear Company issued $1,000,000 face value bonds for $930,000 These 7% bonds pay interest each July 1 and January 1. Pear uses straight line amortization on these 20 year bonds. On January 1, 2020, Apple Company acquired all of the Pear...
In 2000 the Kirk Company purchased 100% of the Spock Company at book value. Kirk uses...
In 2000 the Kirk Company purchased 100% of the Spock Company at book value. Kirk uses the initial value method to account for its investment in Spock and Spock does not pay any dividends. On 1/1/2010 Spock Company purchased a spaceship for $4,000,000. Spock believes this spaceship will last 20 years have no salvage value Spock uses straight line depreciation On 1/1/2015 Spock sold the spaceship to Kirk for a $3,300,000 12% note.   Kirk believes the spaceship will last 15...
A company manufactures 10,000 microwave ovens every period. Each of the ovens requires a timer. The...
A company manufactures 10,000 microwave ovens every period. Each of the ovens requires a timer. The company currently manufactures the 10,000 timers with the following cost: direct materials $40,000, direct labor $50,000, variable overhead $20,000, fixed overhead $60,000 (the fixed overhead is only 50% avoidable if the company stops making timers). An external supplier offers the company to supply the timers for $15 each. What will be the effect on the company's profit if it decides to buy the timers...
ClearCase Company manufactures display cases to be sold to retail stores. The cases come in three...
ClearCase Company manufactures display cases to be sold to retail stores. The cases come in three sizes: Large, Medium, and Small. Currently, ClearCase Company uses a single plant-wide overhead rate to allocate its $3,357,800 of annual manufacturing overhead. Of this amount, $820,000 is associated with the Large Case line, $1,276,800 is associated with the Medium Case line, and $1,261,000 is associated with the Small Case line. ClearCase Company is currently running a total of 33,000 machine hours: 10,000 in the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT