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 Gerald Company expect to use in production during the second month?

Question

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 Gerald Company expect to use in production during the second month?

Quizplus · Accepted Answer

Gerald Company plans to produce 1,200 books in the second month, requiring 12,000 units of A1 (1,200 books x 10 units of A1 per book).

Gerald Company Manufactures Books