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Each gallon of Old Guard, a popular aftershave lotion, requires 2.75 ounces of ocean scent. Budgeted production of Old Guard for the first three quarters
Each gallon of Old Guard, a popular aftershave lotion, requires 2.75 ounces of ocean scent. Budgeted production of Old Guard for the first three quarters of 2016 is as follows:
Quarter I | 13,000 | gallons |
Quarter II | 18,000 | gallons |
Quarter III | 12,000 | gallons |
Managements policy is to have on hand at the end of every quarter enough ocean scent inventory to meet 23% of the next quarters production needs. At the beginning of Quarter I, 8,222 ounces of ocean scent were on hand.
a. Calculate the number of ounces of ocean scent to be purchased in each of the first two quarters of 2016
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