Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 20x3 are as follows: Yarex Darol Norex 20x2 127,000 87,000 57,000 Raw Material Gamma Murad Islin Tarden 20x3 137,000 77,000 67,000 • Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 6 percent of that year's projected sales. Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year. The raw-material requirements of the three products are shown in the following chart. Units pounds pounds gallons gallons Unit Price $ 7.00 5.00 4.00 9.00 Yarex 0.4 0.6 1.2 0 Darol 0.6 0 0.9 0.5 Norex 0 0.7 0.7 0.7 Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 15 percent of the previous year's usage of that raw material. The conversion requirements in hours per gallon for the three products are Yarex, 0.06 hour; Darol, 0.09 hour; and Norex, 0.15 hour. The conversion cost of $20 per hour is considered 100 percent variable. Required: 1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2.
Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and Norex. Projected sales in gallons for the three products for the years 20x2 and 20x3 are as follows: Yarex Darol Norex 20x2 127,000 87,000 57,000 Raw Material Gamma Murad Islin Tarden 20x3 137,000 77,000 67,000 • Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 6 percent of that year's projected sales. Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant throughout the year. The raw-material requirements of the three products are shown in the following chart. Units pounds pounds gallons gallons Unit Price $ 7.00 5.00 4.00 9.00 Yarex 0.4 0.6 1.2 0 Darol 0.6 0 0.9 0.5 Norex 0 0.7 0.7 0.7 Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 15 percent of the previous year's usage of that raw material. The conversion requirements in hours per gallon for the three products are Yarex, 0.06 hour; Darol, 0.09 hour; and Norex, 0.15 hour. The conversion cost of $20 per hour is considered 100 percent variable. Required: 1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Empire Polymer Development produces three products using three different continuous processes. The products are Yarex, Darol, and
Norex. Projected sales in gallons for the three products for the years 20x2 and 20x3 are as follows:
.
.
.
Yarex
Darol
Norex
Raw Material
Gamma
Murad
20x2
127,000
87,000
57,000
Inventories are planned for each product so that the projected finished-goods inventory at the beginning of each year is equal to 6
percent of that year's projected sales.
Because of the continuous nature of Empire's processes, work-in-process inventory for each of the products remains constant
throughout the year.
The raw-material requirements of the three products are shown in the following chart.
Islin
Tarden
20x3
137,000
77,000
67,000
Units
pounds
pounds
gallons
gallons
Unit Price Yarex
$ 7.00
0.4
5.00
0.6
4.00
1.2
9.00
0
Darol
0.6
0
0.9
0.5
Norex
0
0.7
0.7
0.7
Raw-material inventories are planned so that each raw material's projected inventory at the beginning of a year is equal to 15
percent of the previous year's usage of that raw material.
The conversion requirements in hours per gallon for the three products are Yarex, 0.06 hour; Darol, 0.09 hour; and Norex, 0.15 hour.
The conversion cost of $20 per hour is considered 100 percent variable.
Required:
1. Determine Empire Polymer Development's production budget (in gallons) for the three products for 20x2.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education