Gold, Inc. makes and sells a single product, bricks. Three pounds of mortar are needed to make one brick. Budgeted production of bricks for the next fev months follows: September October 25,000 units 31,000 units The company wants to maintain monthly ending inventories of mortar equal to 20% of the following month's production needs. How much mortar should be purchased in September?
Gold, Inc. makes and sells a single product, bricks. Three pounds of mortar are needed to make one brick. Budgeted production of bricks for the next fev months follows: September October 25,000 units 31,000 units The company wants to maintain monthly ending inventories of mortar equal to 20% of the following month's production needs. How much mortar should be purchased in September?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gold, Inc. makes and sells a single product, bricks. Three pounds of mortar are needed to make one brick. Budgeted production of bricks for the next few
months follows:
25,000 units
31,000 units
September
October
The company wants to maintain monthly ending inventories of mortar equal to 20% of the following month's production needs. How much mortar should be
purchased in September?
O 1.90,000
O 2.71,400
O 3.75,000
O 4.93,600
O 5.78,600
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