Question
Short Company produces two products: X Brand and Y Brand. Budgeted sales for four months are as follows: X Brand Y Brand May 10,000 40,000
Short Company produces two products: X Brand and Y Brand. Budgeted sales for four months are as follows:
Shorts ending inventory policy is that X Brand should have 10% of its next months sales in ending inventory and Y Brand should have 20% of next months sales in its ending inventory. On May 1, Shorties inventory had 1,000 units of X Brand and 9,000 units of Y Brand. Y Brand requires four units of component A. (X Brand does not use component A.) On May 1, 2,100 units of component A were in inventory. Short wants to have 30% of the following months production needs in inventory for component A. |
a)How much component A will be budgeted in May? Please show your work.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started