Ask Question
3 August, 00:16

The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows:

Number of foam cushions to be produced in July 13, 000

Number of foam cushions to be produced in August 12, 000

Number of foam cushions to be produced in September 14, 000

Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 25% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August?

(A) 18,000

(B) 25, 000

(C) 30,000

(D) 31, 000

+2
Answers (1)
  1. 3 August, 03:26
    0
    Instructions are listed below.

    Explanation:

    Giving the following information:

    Number of foam cushions to be produced in July 13, 000

    Number of foam cushions to be produced in August 12, 000

    Number of foam cushions to be produced in September 14, 000

    Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 25% of the following month's expected production needs.

    Production for August:

    Sales = 12,000*2 = 24,000

    Ending inventory = (14,000*0.25) * 2 = 7,000

    Beginning inventory = (12,000*0.25) * 2 = 6,000 (-)

    Total = 25,000 pounds
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: Number of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers