Holt Frames manufactures picture frames. Sales for April are expected to be 12,500 units of various sizes. Historically, the average frame requires 4 feet of framing, 1 square foot of glass, and 2 square feet of backing. Beginning inventory includes 5,000 feet of framing, 1,000 square feet of glass, and 2,000 square feet of backing. Current prices are $0.10 per foot of framing, $3.00 per square foot of glass, and $2.00 per square foot of backing. Ending inventory should be 150 percent of beginning inventory. Purchases are paid for in the month acquired.
Required:
a. Determine the quantity of framing, glass, and backing that Holt Frames is to purchase during April.
b. Determine the total amount of cash needed for April purchases.

Question

Holt Frames manufactures picture frames. Sales for April are expected to be 12,500 units of various sizes. Historically, the average frame requires 4 feet of framing, 1 square foot of glass, and 2 square feet of backing. Beginning inventory includes 5,000 feet of framing, 1,000 square feet of glass, and 2,000 square feet of backing. Current prices are $0.10 per foot of framing, $3.00 per square foot of glass, and $2.00 per square foot of backing. Ending inventory should be 150 percent of beginning inventory. Purchases are paid for in the month acquired. 
Required:
a. Determine the quantity of framing, glass, and backing that Holt Frames is to purchase during April.
b. Determine the total amount of cash needed for April purchases.

Quizplus · Accepted Answer

The Answer of Holt Frames manufactures picture frames. Sales for April are expected to be 12,500 units of various sizes. Historically, the average frame requires 4 feet of framing, 1 square foot of glass, and 2 square feet of backing. Beginning inventory includes 5,000 feet of framing, 1,000 square feet of glass, and 2,000 square feet of backing. Current prices are $0.10 per foot of framing, $3.00 per square foot of glass, and $2.00 per square foot of backing. Ending inventory should be 150 percent of beginning inventory. Purchases are paid for in the month acquired. 
Required:
a. Determine the quantity of framing, glass, and backing that Holt Frames is to purchase during April.
b. Determine the total amount of cash needed for April purchases.

Holt Frames Manufactures Picture Frames