Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected b
ID: 2520061 • Letter: M
Question
Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows July Aug. e.ctNovDec. Budgeted unit sales 10,000 14,000 18,000 10,000 16,000 11,000 Mate likes to maintain a finished goods inventory equal to 11% of the next month's estimated sales. Seven ounces of plastic resin are needed to produce every boomerang. Mate likes to have enough plastic resin on hand at the end of the month to cover 27% of the next month's production requirementsExplanation / Answer
JULY
AUG
SEP
OCT
NOV
DEC
BUDGETED SALES
10000
14000
18000
10000
16000
11000
FINISHED GOODS INVENTORY
1540
1980
1100
1760
1210
TOTAL TO BE PRODUCED
11540
15980
19100
11760
17210
RESIN REQUIRED
80780
111860
133700
82320
120470
RESIN INVENTORY REQUIRED
30202
36099
22226
32527
JULY
AUG
SEP
OCT
NOV
DEC
BUDGETED SALES
10000
14000
18000
10000
16000
11000
FINISHED GOODS INVENTORY
1540
1980
1100
1760
1210
TOTAL TO BE PRODUCED
11540
15980
19100
11760
17210
RESIN REQUIRED
80780
111860
133700
82320
120470
RESIN INVENTORY REQUIRED
30202
36099
22226
32527