Abrams Bottling Company sells fruit-flavored colas.Estimated sales in cartons for May,June,and July are 1,000,3,000 and 5,000 respectively.The price is forecast at $5 per carton.Abrams requires that finished goods ending inventory be 20 percent of the next month's sales.Inventory was 500 units on May 1.Each carton requires 12 oz of fruit syrup and 130 oz of carbonated water.Materials ending inventory is 10 percent of the next month's production needs.May 1 inventory met that requirement.

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The Answer of Abrams Bottling Company sells fruit-flavored colas.Estimated sales in cartons for May,June,and July are 1,000,3,000 and 5,000 respectively.The price is forecast at $5 per carton.Abrams requires that finished goods ending inventory be 20 percent of the next month's sales.Inventory was 500 units on May 1.Each carton requires 12 oz of fruit syrup and 130 oz of carbonated water.Materials ending inventory is 10 percent of the next month's production needs.May 1 inventory met that requirement.

Abrams Bottling Company Sells Fruit-Flavored Colas