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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 requirements

Explanation / 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