Question
Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next
Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to be 30% of next month's production needs. Steel inventory is expected to increase 5 units in each of the next two months.
What is the number of units of wood that need to be purchased by Roaming Vehicles Company during the first month?
Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to be 30% of next month's production needs. Steel inventory is expected to increase 5 units in each of the next two months.
What is the number of units of wood that need to be purchased by Roaming Vehicles Company during the first month?
10,000 units
6,180 units
10,400 units
6,000 units
9,600 units
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
