2 per ounce for ink. Seminole estimates p its in November, and 140,000 units in De 000 pounds of wood pulp and 100,000 ou Ip (in dollars) should Seminole budget to

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Seminole Corporation is a manufacturer of high-quality finance books. Each book requires 2 pounds
of wood pulp and 5 ounces of ink. Wilco's policy is to keep 10 percent of the materials required for
the following month's production in inventory at the end of each month. Wilco pays $10 per pound
for wood pulp and $2 per ounce for ink. Seminole estimates production of 100,000 units in
October, 120,000 units in November, and 140,000 units in December. They plan on ending
September with 20,000 pounds of wood pulp and 100,000 ounces of ink in materials inventory.
How much wood pulp (in dollars) should Seminole budget to purchase in November?
Provide your answer as a whole number
Transcribed Image Text:Seminole Corporation is a manufacturer of high-quality finance books. Each book requires 2 pounds of wood pulp and 5 ounces of ink. Wilco's policy is to keep 10 percent of the materials required for the following month's production in inventory at the end of each month. Wilco pays $10 per pound for wood pulp and $2 per ounce for ink. Seminole estimates production of 100,000 units in October, 120,000 units in November, and 140,000 units in December. They plan on ending September with 20,000 pounds of wood pulp and 100,000 ounces of ink in materials inventory. How much wood pulp (in dollars) should Seminole budget to purchase in November? Provide your answer as a whole number
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