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Quarter 4 2,275,000 (5) Selling price is $56 per unit (6) Kinn Co aims to maximise its profits
Task 1
0 of 2 marks
Calculate the budgeted opening and closing finished goods inventory for Quarter 1 to the nearest thousand units.
Opening finished goods inventory ‘000 units Closing finished goods inventory ‘000 units
Task 2
0 of 2 marks
The desired closing finished goods inventory in Quarter 4 is 150,000 units. Calculate the budgeted number of units to be produced in Quarter 4 to the nearest thousand units.
Production in Quarter 4 ‘000 units
Task 3
0 of 2 marks
Kinn Co budgets to produce 3,175,000 units in Quarter 3 to meet sales demand and to achieve a closing finished goods inventory of 175,000 units. What is the budgeted cost for raw material usage in Quarter 3 to the nearest thousand dollars? $ ‘000
Tasks 4 and 5
0 of 4 marks
The company’s raw material supplier has informed them that due to restrictions on the manufacture of the material, the supply to the company will be restricted to 6,600,000 kg per quarter for the foreseeable future beginning from quarter 1. Kinn decides to purchase the maximum amount of material available in each quarter and build up inventory of finished goods whenever possible. Under these restrictions the budgeted opening finished goods inventory in quarter 3 will be 325,000 units.
Task 4
0 of 2 marks
Calculate a revised closing finished goods inventory for Quarter 3 to the nearest unit, taking into account the restrictions on the raw material supply. units
Task 5
0 of 2 marks
Which TWO of the following would NOT help Kinn Co overcome problems caused by the restriction in raw material supply? Top of Form
Requesting a settlement discount
More efficient use of material Seeking alternative sources of supply Using the economic order quantity model