C.J.'s Cookie Company produces chocolate chip cookies. Raw materials inventory includes flour, sugar, and chocolate chips at standard cost of $5.00 per pound. C.J. uses 1/20 of a pound of raw materials per cookie. CJ's anticipates quarterly sales as follows:
Beginning finished goods inventory is 90,000 cookies. Beginning raw materials inventory is 6,000 pounds. Target raw materials = 40% of next quarter's material needs. Target finished goods inventory is 30% of next quarter's sales.
- What is the forecasted production for the second quarter, 2012?

Question

C.J.'s Cookie Company produces chocolate chip cookies. Raw materials inventory includes flour, sugar, and chocolate chips at standard cost of $5.00 per pound. C.J. uses 1/20 of a pound of raw materials per cookie. CJ's anticipates quarterly sales as follows:
 Beginning finished goods inventory is 90,000 cookies. Beginning raw materials inventory is 6,000 pounds. Target raw materials = 40% of next quarter's material needs. Target finished goods inventory is 30% of next quarter's sales.
- What is the forecasted production for the second quarter, 2012?

Quizplus · Accepted Answer

The forecasted production for the second quarter, 2012 is 355,000.

CJ'S Cookie Company Produces Chocolate Chip Cookies