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Cherboneau Novelties produces drink coasters among many other products During the current year year the company sold units packages of coasters In the coming year year the company expects to sell units, and, in year it expects to sell units. The target ending finished goods inventory for each month is equal to the next month's sales. However, because of production issues, the ending inventory in the current year is expected to be only units.
Each unit requires pound of cork. At the end of the current year, management expects to have pounds of cork in inventory. Management has set a target to have cork on hand equal to one half of next month's sales requirements. Sales and production take place evenly throughout the year.
Required:
a Compute the total targeted production of the finished coaster for the coming year.
b Compute the required amount of cork to be purchased for the coming year.
References
tablea Total targeted production in units,unitsb Materials to be purchased in pounds,pounds
