70.2K

Verified Solution

Link Copied!

16.

Porch, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Porch markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers. Read the requirements. Requirement 1. For 2018, Porch marketing managers project monthly sales of 480,000 12-ounce bottles and 140,000 1-gallon containers. Average selling prices are estimated at $0.40 per 12-ounce bottle and $1.30 per 1-gallon container. Prepare a revenues budget for Porch, Inc., for the year ending December 31, 2018. Revenues Budget For Year Ending December 31,2018 Units Price Total 12-oz. bottles 1-gallon containers Budgeted revenues Requirement 2. Porch begins 2018 with 960,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 650,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Porch must produce during 2018? Production Budget (in Units) For the Year Ending December 31,2018 12 oz. bottles Units to be produced Requirement 3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 240,000 units. If the production budget calls for Porch to produce 1,800,000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018? The beginning inventory of 1-gallon containers, in units, is on January 1, 2018

Answer & Explanation Solved by verified expert

See Answer