Ensley, Inc. makes and sells a single product, widgets. Three pounds of wackel are needed to make one widget. Budgeted production of widgets for the next few months follows:
September 29,000 units
October 31,000 units
The company wants to maintain monthly ending inventories of wackel equal to 20% of the following month's production needs. On August 31, 9,000 pounds of wackel were on hand.
Instructions
How much wackel should be purchased in September?

Question

Quizplus · Accepted Answer

The Answer of Ensley, Inc. makes and sells a single product, widgets. Three pounds of wackel are needed to make one widget. Budgeted production of widgets for the next few months follows:
September 29,000 units
October 31,000 units
The company wants to maintain monthly ending inventories of wackel equal to 20% of the following month's production needs. On August 31, 9,000 pounds of wackel were on hand.
Instructions
How much wackel should be purchased in September?