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Sit - Down Ltd manufactures chairs. Each chair requires 4 2 5 grams of plastic costing $ 0 . 3 4 per 1 0 grams.

Sit-Down Ltd manufactures chairs. Each chair requires 425 grams of plastic costing $0.34
per 10 grams. Sit-Down uses the plastic to cover the chairs. Sit-Down has budgeted
production of chairs for the next four months as follows:
Units
March
3,500
April
4,400
May
4,900
June
6,300
Inventory policy requires that sufficent plastic be in ending monthly inventory to satisfy
20 percent of the following month's production needs. The inventory of plastic at the
beginning of March equals exactly the amount needed to satisfy the inventory policy.
The ending inventory (grams) for March is
374,000
297,500
535,500
416,500

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