Sallinger Products Inc. makes and sells grill covers. On March 31, the company had 400 covers in inventory. The company's policy is to maintain a cover inventory equal to 10% of next month's projected sales. The company expects the following sales activity for the second quarter of the year:
Sales for both July and August are expected to be 8,000 units each. Each completed unit of finished product requires 6 yards of a plastic material which costs $.60 per yard. The company has determined that it needs 15% of next month's raw material needs on hand at the end of each month. The company had 3,000 yards of plastic material on hand at the end of March.
Required:

Question

Sallinger Products Inc. makes and sells grill covers. On March 31, the company had 400 covers in inventory. The company's policy is to maintain a cover inventory equal to 10% of next month's projected sales. The company expects the following sales activity for the second quarter of the year:
  Sales for both July and August are expected to be 8,000 units each. Each completed unit of finished product requires 6 yards of a plastic material which costs $.60 per yard. The company has determined that it needs 15% of next month's raw material needs on hand at the end of each month. The company had 3,000 yards of plastic material on hand at the end of March.
Required:

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The Answer of Sallinger Products Inc. makes and sells grill covers. On March 31, the company had 400 covers in inventory. The company's policy is to maintain a cover inventory equal to 10% of next month's projected sales. The company expects the following sales activity for the second quarter of the year:
  Sales for both July and August are expected to be 8,000 units each. Each completed unit of finished product requires 6 yards of a plastic material which costs $.60 per yard. The company has determined that it needs 15% of next month's raw material needs on hand at the end of each month. The company had 3,000 yards of plastic material on hand at the end of March.
Required: