Question

each cushion requires 2 pound of the foam used as stuffing. The company has a policy has a policy that the ending invetory of foam each month must be equal to 15% of the following month's expected production needs. How many pounds of foam does the porch cushioon company need to purchase in auguyst

Answer 1

Answer:

34,200

Explanation:

Calculation to determine How many pounds of foam does The Porch Cushion Company need to purchase in​ August

Does

First step is to calculate the Opening Inventory

Opening Inventory = (100%-15%)*(18,000*2)

Opening Inventory=85%*36,000

Opening Inventory=30600 pounds

Second step is to calculate the

Closing Inventory = 15%* (12,000*2)

Closing Inventory=15%*24,000

Closing Inventory=3600 pounds

Now let calculate the No of pounds required to purchase using this formula

No of pounds required to purchase = Opening inventory+Closing inventory

Let plug in the formula

No of pounds required to purchase=30,600+3,600

No of pounds required to purchase=34,200

Therefore the amount of pounds of foam that The Porch Cushion Company need to purchase in​ August is 34,200