This Question: 2 pts 210125(0 complete) ? b This Test: 50 pts possible Number of

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This Question: 2 pts 210125(0 complete) ? b This Test: 50 pts possible Number of foam cushions to be produced in July Number of foam cushions to be produced in August Number of foam cushions to be produced in September 13,000 9,000 as stuffing. The company has a policy hat the ending inventory of foam each month must be equal to 15% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August? O A. 33,150 OB, 43,060 ??. 37,200 O D. 44,850 MacBook A

Explanation / Answer

Number of cushions to be produced in July 10000

As such pounds of foam required=10000*3

=30000 pounds

As per policy,ending inventory of the foam that needs to be maintained during July=15%of next month expected production needs.

so,next month i.e. August production needs of foam=(13000*3)*.15

=5850 pounds

In August,the production is 13000 units,so foam required will be(13000*3)

=39000 pounds

As per policy,end inventory to be maintained in August is 15% of September production needs

i.e.(9000*3)*.15

=4050 pounds

So,foam required to be purchased in August=production requirement in August-Ending inventory of July+Ending inventory of August

=(13000*3)-5850+4050

=39000-5850+4050

=37200 pounds

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