17.) Jackson Inc. produces leather handbags. The production budget for the next

Question

17.)

Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,000 units, August 7,000 units, September 7,500 units, October 8,000 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 750 square meters. What will leather purchases be in July?

2,300 square meters

2,700 square meters

2,550 square meters

3,575 square meters

18.)

Marlow Company produces hand tools. A production budget for the next four months is as follows: March 10,600 units, April 13,625, May 16,600, and June 21,000. Marlow Company’s ending finished goods inventory policy is 15% of the following month’s sales. Marlow plans to sell 16,600 units in May. What is budgeted ending inventory for March?

1,590

2,044

1,965

2,490

19.)

Jared Inc. produces leather handbags. The sales budget for the next four months is: July 5,300 units, August 7,300, September 7,500, October 8,800. Each handbag requires 0.5 square meters of leather. Jared Inc.’s finished goods inventory policy is 10% of next month’s sales needs. Jared Inc.’s leather inventory policy is 30% of next month’s production needs. What will leather purchases be in August? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)

3,707 square meters

3,532 square meters

3,557 square meters

3,615 square meters

Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,000 units, August 7,000 units, September 7,500 units, October 8,000 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 750 square meters. What will leather purchases be in July?

Explanation / Answer

Jul Aug Sep Oct Opening inventory         1,500         2,100         2,250         2,400 Add: Purchases         5,600         7,150         7,650 Less: Closing Inventory         2,100         2,250         2,400 Production         5,000         7,000         7,500         8,000 1) 5600*0.5 = 2,800 square meter

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