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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
Materials to be purchased 100,000 ounces
See attached Excel file for format and formulas.
sales 160000 calculators
number of shells required 160000
opening stock 20000 units
The expert calculates materials to be purchased for casing plants of Wyoming Machines.