Gertrude Products expects the following sales of its single product: Units June July 6,280 6,780 August 7,480 September 8,080 October 9,080 Required Gertrude has an ending finished goods inventory policy of 10% of the next month's sales needs. Each unit requires 5 pounds of Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes 8,600 pounds of Chemical A and 76,000 pounds of Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month's production needs and a Chemical B inventory equal to 100% of next month's production needs. a. Prepare a production budget for Gertrude Products for the quarter ending September 30.

Gertrude Products expects the following sales of its single product: Units June July 6,280 6,780 August 7,480 September 8,080 October 9,080 Required Gertrude has an ending finished goods inventory policy of 10% of the next month's sales needs. Each unit requires 5 pounds of Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes 8,600 pounds of Chemical A and 76,000 pounds of Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month's production needs and a Chemical B inventory equal to 100% of next month's production needs. a. Prepare a production budget for Gertrude Products for the quarter ending September 30.

Name: min.2 Problem 8-109 (Algo) [LO 8-3b, 8-3c]Gertrude Products expects th
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Description: min.2 Problem 8-109 (Algo) [LO 8-3b, 8-3c]Gertrude Products expects the following sales of its single product:UnitsJuneJuly6,2806,780August7,480September8,080October9,080RequiredGertrude has an ending finished goods inventory policy of 10% of the nex

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 19P

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mal failure or charged tn fatan, unhand ahat in h а. Р 20. Sheryl Corporation had been buying 1,200 units of Product A which represents a four month's supply. The cost per unit is P100; the order cost is P200 per order; and the annual inventory carrying cost for one unit is P25. Assume that the units will be required evenly throughout the year. What is the economic order quantity? а. 144 b. 240 c. 600 d. 1,200
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