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There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20 % of the unit sales for the next month. Five pounds of materials are required for each unit produced. Each pound of material costs $ 8. Inventory levels for materials are equal to 30 % of the needs for the next month. Materials inventory on June 1 was 15,000 pounds. Prepare production budgets in units for July, August, and September. Question 3. Question:( TCO 3) As part of his job as cost analyst, Max Thompson collected the following information concerning the operations of the Machining Department: Observation Machine-hours Total Operating Costs January 4,000 $ 45,000 February 4,600 49,500 March 3,800 45,750 April 4,400 48,000 May 4,500 49,800 Use the high-low method to determine the estimating cost function with machine-hours as the cost driver. Question 4. Question:( TCO 5) Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items are produced, the costs per unit are: Direct materials $ 12 Direct manufacturing labor 60 Variable manufacturing overhead 24 Fixed manufacturing overhead 32 Total $ 128 Monty Company has offered to sell Lewis Auto Company 10,000 units of the part for $ 120 per unit. The plant facilities could be used to manufacture another part at a savings of $ 180,000 if Lewis Auto accepts the supplier ' s offer. In addition, $ 20 per unit of fixed manufacturing overhead on the original part would be eliminated. A. What is the relevant per unit cost for the original part? B. Which alternative is best for Lewis Auto Company? By how much? ========================================= ACCT 434 Week 1 Quiz( New)