Stewart Co. produces plastic buckets. The following budget data are available: (a) Ending finished goods inventory: 20

Question:

Stewart Co. produces plastic buckets. The following budget data are available: 

(a) Ending finished goods inventory: 20 percent of next quarter's sales. 

(b) Ending materials inventory: 30 percent of next quarter's production. 

(c) Forecast sales for each quarter of 1998 are 1,000, 1,100, 1,200, and 1,300 buckets, respectively. 

(d) Two pounds of plastic are needed for each bucket. January 1, 1998, invento- ries are at the correct planned levels.


Required:
How many pounds of plastic must be purchased for the first two quarters of 1998 to meet the bucket sales forecast?

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Managerial Accounting

ISBN: 9780538842822

9th Edition

Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson

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