Answer to Question #212522 in Management for Riza

Question

2. Mariel Co. is planning to sell 600 straw hats. Each hat requires ½ kilo of straw and ¼ hour of direct labor. Straw costs ₱ 0.20 per kilo and employees of the company are paid ₱22 per hour. Lewis has 80 kilos of straw and 40 hats in the beginning inventory and wants to have 50 kilos of straw and 60 hats in the ending inventory. How many units should Mariel Co. produce in April? 

Answer 1

Finished goods inventory 

Finished goods are goods that are completely processed out from the production process. They get existence from the worth in process inverted by the raw material. An organisation may have some beginning finished goods inventory before the start of operations for the business. The organisation will produce these finished goods and sell these finished to the customers to earn profits. The production of finished goods will increase the inventory in the hand of finished goods, and selling finished goods will reduce the stock of finished goods inventory. At the end of the period of operations, the organisation reports the evening finished goods inventory