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[The following information applies to the questions displayed below.] Each gallon of Old Guard, a popular aftershave lotion, requires 2.75 ounces of ocean scent. Budgeted

[The following information applies to the questions displayed below.]

Each gallon of Old Guard, a popular aftershave lotion, requires 2.75 ounces of ocean scent. Budgeted production of Old Guard for the first three quarters of 2013 is:

Quarter I 10,000 gallons
Quarter II 17,000 gallons
Quarter III 12,000 gallons

Managements policy is to have on hand at the end of every quarter enough ocean scent inventory to meet 26% of the next quarters production needs. At the beginning of Quarter I, 7,150 ounces of ocean scent were on hand.

17. value:

1.05 points Required information

Required:
a.

Calculate the number of ounces of ocean scent to be purchased in each of the first two quarters of 2013.

Number of ounces in Q1: Number of ounces in Q2:

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