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problem: Mate Boomerang Corporation manufactures & sells plastic boomerangs. Expected boomerang sales [in units] for the upcoming months are as follows:

 

Expected

 

Unit

 

Sales

July

12,000

August

15,000

September

10,000

October

8,000

November

7,000

December

11,000

Seven (7) 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 25 percent of the next month's production requirements. Mate also likes to maintain a finished goods inventory equal to 10 percent of next month's estimated sales.

Required:

Determine how many ounces of plastic resin should Mate plan on buying during the month of October?

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922198

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