Wammy Company makes rolling suitcases.Its sales budget for four months is as follows:
Wammy's policy is that ending inventory of finished suitcases should equal 30% of the next month's sales.Beginning inventory (March 1)is 5,300 suitcases.
Each suitcase required 1.5 metres of ballistic nylon.The ending inventory policy for nylon is that 20% of the following month's production needs must be on hand.On March 1,Wammy had 10,450 metres of nylon in inventory.
$\begin{array}{lc}
\text { Month } & \text { Unit Sales } \
\text { March }& 15,000 \
\text { April } & 20,000 \
\text { May } & 40,000 \
\text { June } & 60,000
\end{array}$ A. What is the desired ending inventory of suitcases for April?
B. What is the budgeted production of suitcases for April?
C. What is the desired ending inventory of nylon for March?
D. What are the budgeted metres of nyl on to be purchased in March?
E. Assuming each suitcase required 2 metres of ballistic nylon, what is the desired ending inventory of nylon for March?

Question

Wammy Company makes rolling suitcases.Its sales budget for four months is as follows:
Wammy's policy is that ending inventory of finished suitcases should equal 30% of the next month's sales.Beginning inventory (March 1)is 5,300 suitcases.
Each suitcase required 1.5 metres of ballistic nylon.The ending inventory policy for nylon is that 20% of the following month's production needs must be on hand.On March 1,Wammy had 10,450 metres of nylon in inventory.
 $\begin{array}{lc}
\text { Month } & \text { Unit Sales } \
\text { March }& 15,000 \
\text { April } & 20,000 \
\text { May } & 40,000 \
\text { June } & 60,000
\end{array}$ A. What is the desired ending inventory of suitcases for April?
B. What is the budgeted production of suitcases for April?
C. What is the desired ending inventory of nylon for March?
D. What are the budgeted metres of nyl on to be purchased in March?
E. Assuming each suitcase required 2 metres of ballistic nylon, what is the desired ending inventory of nylon for March?

Quizplus · Accepted Answer

The Answer of Wammy Company makes rolling suitcases.Its sales budget for four months is as follows:
Wammy's policy is that ending inventory of finished suitcases should equal 30% of the next month's sales.Beginning inventory (March 1)is 5,300 suitcases.
Each suitcase required 1.5 metres of ballistic nylon.The ending inventory policy for nylon is that 20% of the following month's production needs must be on hand.On March 1,Wammy had 10,450 metres of nylon in inventory.
 $\begin{array}{lc}
\text { Month } & \text { Unit Sales } \
\text { March }& 15,000 \
\text { April } & 20,000 \
\text { May } & 40,000 \
\text { June } & 60,000
\end{array}$ A. What is the desired ending inventory of suitcases for April?
B. What is the budgeted production of suitcases for April?
C. What is the desired ending inventory of nylon for March?
D. What are the budgeted metres of nyl on to be purchased in March?
E. Assuming each suitcase required 2 metres of ballistic nylon, what is the desired ending inventory of nylon for March?

Wammy Company Makes Rolling Suitcases A What Is the Desired Ending Inventory of Suitcases for Is