Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs

Question

Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales Fab (in units) for the next three months are as follows: Fab likes to maintain a finished goods inventory equal to 30% of the next month s estimated sales How many mugs should Fab plan on producing during the month of November 23,200 mugs 26,800 mugs 25,900 mugs 34.300 mugs G Products Inc., manufactures garlic gravy. G's production budget indicated the following units (jars) of gravy to be produced for the upcoming months indicated: Five grams of garlic are needed for even jar of gravy. G also likes to have enough garlic on hand at the end of the month to cover 10% of the next month's production requirements for garlic. How many grams of garlic should G plan on purchasing during the month of May 397.500 grams 399.500 grams 407.500 grams 437.500 grams

Explanation / Answer

October November December Sales 28000 25000 31000 Closing Inventory 30% of next month 7500 9300 Opening 7500 Units produced 26800 ( 25000+9300-7500) The correct option is B. 26800 Mugs April May June 13 Units to be produced 82000 80000 75000 Garlic 410000 400000 375000 Closing Inventory 40000 37500 Opening 40000 To be produced 397500 The correct option is A. 397500 grams

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