Cushion Company manufactures foam cushions. The number of cushions to be produce- foam cushions to be produced in July foam cushions to be produced in August foam cushions to be produced in September 10,000 13,000 8,000 ion requires 4 pounds of the foam used as stuffing. The company has a policy that the enc qual to 30% of the following month's expected production needs. How many pounds of foa need to purchase in August? ,400 ,600 5,000 7,600

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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20
follows:
The Posh Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months
Number
Number
of foam cushions to be produced in July
of foam cushions to be produced in August
Number of foam cushions to be produced in September
10,000
13,000
8,000
Each cushion requires 4 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month
must be equal to 30% of the following month's expected production needs. How many pounds of foam does The Posh Cushion
Company need to purchase in August?
OA. 36,400
B. 61,600
C. 46,000
D. 67,600
Time Remaining: 01:07:13
Transcribed Image Text:20 follows: The Posh Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months Number Number of foam cushions to be produced in July of foam cushions to be produced in August Number of foam cushions to be produced in September 10,000 13,000 8,000 Each cushion requires 4 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 30% of the following month's expected production needs. How many pounds of foam does The Posh Cushion Company need to purchase in August? OA. 36,400 B. 61,600 C. 46,000 D. 67,600 Time Remaining: 01:07:13
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