Question
[The following information applies to the questions displayed below.] Each gallon of Old Guard, a popular aftershave lotion, requires 3 ounces of ocean scent. Budgeted
[The following information applies to the questions displayed below.] Each gallon of Old Guard, a popular aftershave lotion, requires 3 ounces of ocean scent. Budgeted production of Old Guard for the first three quarters of 2013 is: Quarter I 14,000 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 24% of the next quarters production needs. At the beginning of Quarter I, 10,080 ounces of ocean scent were on hand.
Required: | |
a. | Calculate the number of ounces of ocean scent to be purchased in each of the first two quarters of 2013. |
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