The Porch Cushion Company manufactures foam cushions. The number of cushions to

Question

The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows Number of foam cushions to be produced in July Number of foam cushions to be produced in August Number of foam cushions to be produced in September 12,000 14,000 Each cushion requires 3 pounds of the oam used as stuffing. The company has a policy that the ending inventory of oam each month must be equal to 25% of the follo ing mo production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August? s expected O A. 52,500 O B. 36,000 O C. 46,500 D. 31,500

Explanation / Answer

purchase in august= end inv+production-beginning inventory

beg inv in august=ending inv in july=25%*14000*3=10500

Ending inv in august=25%*6000*3=4500

production=14000*3=42000

=4500+42000-10500

=36000

it is option B

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