Question
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 2019 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 39% of the next quarters production needs. At the beginning of Quarter I, 13,942 ounces of ocean scent were on hand.
Required: a. Calculate the number of ounces of ocean scent to be purchased in each of the first two quarters of 2019.
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Managerial Accounting
Authors: Karen Wilken Braun, Wendy M. Tietz
2nd Custom Edition
1269396803, 978-1269396806
