The Porch Cushion Company manufactures foam cushions.The number of cushions to be produced in the upcoming three months follows:

Each cushion requires 2 pounds of the foam used as stuffing.The company has a policy that the ending inventory of foam each month must be equal to 25% of the following month's expected production needs.How many pounds of foam does The Porch Cushion Company need to purchase in August?

Question

The Porch Cushion Company manufactures foam cushions.The number of cushions to be produced in the upcoming three months follows:

Each cushion requires 2 pounds of the foam used as stuffing.The company has a policy that the ending inventory of foam each month must be equal to 25% of the following month's expected production needs.How many pounds of foam does The Porch Cushion Company need to purchase in August?

Quizplus · Accepted Answer

A)
August Production 15,000 × 25% = 3,750
September Production 10,000 × 25% = 2,500
Now Production August 15,000
Less BI - 3,750
Plus EI + 2,500
Equals Purchases 13,750 × 2 pounds = 27,500

The Porch Cushion Company Manufactures Foam Cushions