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    Casings Plant of Wyoming Machines: Materials to be purchased

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    I don't know how to do part 2 in finding materials to be purchased.

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    The Casings Plant of Wyoming Machines makes plastics shells for the company's calculators. (Each
    calculator requires one shell.) For each of the next two years, Wyoming expects to sell 160,000
    calculators. The beginning finished goods inventory of shells at the Casings Plant is 20,000 units.
    However, the target ending finished goods inventory for each year is 5,000 units.

    Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 60,000 ounces of plastic
    are in inventory. Management has set a target to have plastic on hand equal to two months' sales
    requirements. Sales and production take place evenly throughout the year.


    (a)Compute the total targeted production of the finished product for the coming year.
    Total targeted production 145000 units

    (b) Compute the required amount of plastic to be purchased for the coming year. (Do not round
    intermediate calculations.)
    Materials to be purchased 100,000 ounces

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    Solution Preview

    See attached Excel file for format and formulas.


    sales 160000 calculators
    number of shells required 160000
    opening stock 20000 units
    closing ...

    Solution Summary

    The expert calculates materials to be purchased for casing plants of Wyoming Machines.