Gerald Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. How many units of A1 does expect to use in production during the second month?

Question

Quizplus · Accepted Answer

In the second month, Gerald Company plans to produce 1,200 books. Each book requires 10 units of A1, so the total A1 needed is 1,200 books * 10 units/book = 12,000 units.

Gerald Company Manufactures Books