Question
Randy Arozena is the owner of a small business based in Tampa Bay, Florida that sells baseball bats. Each bat requires 2 pounds of wood.
Randy Arozena is the owner of a small business based in Tampa Bay, Florida that sells baseball bats. Each bat requires 2 pounds of wood. The following is a production schedule of bats for each month:
August: 14,000 units September: 14,500 units October: 15,500 units November: 12,600 units December: 11,900 units
The company wants to maintain monthly ending inventories of wood equal to 25% of the following month's production needs. On July 31, this requirement was not met since only 2,500 pounds of wood were on hand. The cost of wood is $1.10 per pound. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year.
The total quantity of wood to be purchased in October is:
31,500 pounds 32,505 pounds 30,050 pounds 29,550 pounds
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