Question
SALES PROJECTIONS Wilson Sports basketball sales in August were 150,000 units. Sales are expected to grow by 2% in September. October sales are expected to
SALES PROJECTIONS Wilson Sports basketball sales in August were 150,000 units. Sales are expected to grow by 2% in September. October sales are expected to be 1,000 units less than in September. November sales will be 3% more than October. The selling price of the basketballs will remain the same $30 per unit. December sales projection is 157,000 units. INVENTORY POLICIES FINISHED GOODS MAINTAIN AND ENDING INVENTORY EQUAL TO 25% OF NEXT MONTH SALES ACTUAL BEGINNING INVENTORY 38,500 UNITS DIRECT MATERIALS MAINTAIN AND ENDING INVENTORY EQUAL TO 30% OF NEXT MONTH PRODUCTION ACTUAL BEGINNING INVENTORY 9,000 POUNDS MATERIALS REQUIREMENTS Each basketball requires .25 pounds of materials at a cost of $7 per pound. December production are projected to be 156,000 units. CALCULATE DIRECT MATERIALS COST FOR OCTOBER
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