E14-8 Developing raw material cost standards [LO 9, 10] AND E14-4 Production and purchases …


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E14-8 Developing raw material cost standards [LO 9, 10] AND E14-4 Production and purchases … 1 answer below » TWO PART QUESTION Ozark Manufacturing Co. manufactures and sells household cleaning products. The company’s research department has developed a new cleaner for which a standard
cost must be determined. The new cleaner is made by mixing 13 quarts of triphate solution and 3 pounds of sobase granules and boiling the mixture for several
minutes. After the solution has cooled, 1 ounces of methage are added. This “recipe” produces 11 quarts of the cleaner, which is then packaged in one-quart
plastic dispenser bottles. Raw material costs are: View complete question » TWO PART QUESTION Ozark Manufacturing Co. manufactures and sells household cleaning products. The company’s research department has developed a new cleaner for which a standard
cost must be determined. The new cleaner is made by mixing 13 quarts of triphate solution and 3 pounds of sobase granules and boiling the mixture for several
minutes. After the solution has cooled, 1 ounces of methage are added. This “recipe” produces 11 quarts of the cleaner, which is then packaged in one-quart
plastic dispenser bottles. Raw material costs are: Triphate solution $ 0.28 per quart Sobase granules 0.79 per pound Methage 1.22 per ounce Bottle 0.24 each Using the preceding data, calculate the raw material cost for one bottle of the new cleaner. (Do not round your
intermediate calculations. Round final answer to 3 decimal places. Omit the “$” sign in your response.) Cost per bottle $ Osage Inc., has actual sales for June and July and forecast sales for August, September, October, and November as follows: Actual: June 5,910 units July 6,260 units Forecasted: August 5,970 units September 6,860 units October 5,690 units November 5,390 units Required: (a) The firm%u2019s policy is to have finished goods inventory on hand at the end of the month that is equal to 55% of the next
month%u2019s sales. It is currently estimated that there will be 4,080 units on hand at the end of July. Calculate the number
of units to be produced in each of the months of August, September, and October. (Round your answers to
nearest whole number.) August September October Production (b) Each unit of finished product requires 6 pounds of raw materials. The firm%u2019s policy is to have raw material inventory on
hand at the end of each month that is equal to 65% of the next month%u2019s estimated usage. It is currently estimated that
25,800 pounds of raw materials will be on hand at the end of July. Calculate the number of pounds of raw materials to be
purchased in each of the months of August and September. (Round your answers to nearest whole
number.) August September Purchases View less » Dec 07 2013 04:42 PM

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