Terrific Toys Company manufactures and sells children's skateboards. Each skateboard requires four bearings. For September, Terrific Toys Company has budgeted skateboard sales of 540 skateboards, while 600 skateboards are scheduled to be produced. Terrific Toys Company will begin September with 200 bearings in its beginning inventory, and estimates ending inventory for September to be 440 bearings. How many bearings should Terrific Toys Company purchase in September?

Question

Quizplus · Accepted Answer

First, find the total number of bearings needed for production:
600 skateboards x 4 bearings each = 2400 bearings

Next, find the total number of bearings needed for sales:
540 skateboards x 4 bearings each = 2160 bearings

Add the bearings needed for production and sales to find the total bearings needed:
2400 + 2160 = 4560 bearings

Subtract the ending inventory from the total bearings needed to get the required purchase:
4560 – 440 = 4120 bearings

Finally, subtract the beginning inventory from the required purchase to find how many bearings Terrific Toys Company should purchase in September:
4120 – 200 = 3920 bearings

Therefore, the answer is D) 2640.

Terrific Toys Company Manufactures and Sells Children's Skateboards