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Each gallon of window cleaner requires 124 ounces of AM972 and 27 ounces of CA38. An ounce of AM972 costs Vaughn $0.14. An ounce of
Each gallon of window cleaner requires 124 ounces of AM972 and 27 ounces of CA38. An ounce of AM972 costs Vaughn $0.14. An ounce of CA38 costs the company $0.24. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand. Prepare Vaughn's AM972 purchases budget for the coming year.
Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Vaughn has developed the following budgeted production for the coming year. 1st Quarter Next Year 1st Quarter 2nd Quarter 8,350 3rd Quarter 9,110 4th Quarter 13,500 Forecasted production (gallons) 5,820 6,070 Each gallon of window cleaner requ es 124 ounces of AM 72 and 27 ounces of CA38. An ounce of AM972 costs Vaughn s 14. An ounce o C 38 costs the company $0.24 Vaughn's inventory policy requires ending nventory equal to 20% of the next quarter's production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand. Prepare Vaughn's AM972 purchases budget for the coming year. (Round answers to 0 decimal places, e.g 5,275 and enter price per ounce to 2 decimal places, e.g. 0.35.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter AnnualStep by Step Solution
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