Croy Incorporated has the following projected sales for the next five months: Sales in Month Units April 3,590 May 3,840 June 4,520 July August 4,130 3,990 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of e naterials cost $3.50 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have nonth's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,7 Required:

Croy Incorporated has the following projected sales for the next five months: Sales in Month Units April 3,590 May 3,840 June 4,520 July August 4,130 3,990 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of e naterials cost $3.50 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have nonth's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,7 Required:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A book publishing company is planning its inventory. The cost to store one book is $4 per month. The cost for a production run is $8 per run and $0.50 per book. The company sells 3,600 books per month. How many should be in a production run to minimize inventory costs?
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amm.01
using this layout