Part 3 (20 minutes) Global Colors manufactures a special line of graphic tubing items. For the next coming year, the company estimates it will sell 150,000 units of this item. The beginning finished goods inventory contains 40,000 units. The target for next year's ending inventory is 20,000 units. Each unit requires 5 feet of plastic tubing. The tubing inventory currently includes 100,000 feet of the required tubing. Materials on hand are targeted to equal three month's production. Any shortage in materials will be made up by the immediate purchase of materials. Required: Compute the production target and the materials requirements for the coming period.

Part 3 (20 minutes) Global Colors manufactures a special line of graphic tubing items. For the next coming year, the company estimates it will sell 150,000 units of this item. The beginning finished goods inventory contains 40,000 units. The target for next year's ending inventory is 20,000 units. Each unit requires 5 feet of plastic tubing. The tubing inventory currently includes 100,000 feet of the required tubing. Materials on hand are targeted to equal three month's production. Any shortage in materials will be made up by the immediate purchase of materials. Required: Compute the production target and the materials requirements for the coming period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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