The Posh 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 JulyNumber of foam cushions to be produced in AugustNumber of foam cushions to be produced in September13,00015,0007,000Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month mustbe equal to 15% of the following month's expected production needs. How many pounds of foam does The Posh Cushion Company need topurchase in August?OA. 32,100B. 34,500OC. 25,500OD. 27,600

The Purchase Budget is prepared to estimate the number of units to be purchased during the period.…

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How many pounds of foam does The Posh Cushion Company need to

Principles of Accounting Volume 2

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Chapter7: Budgeting

Section: Chapter Questions

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Question

The Posh 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
13,000
15,000
7,000
Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must
be equal to 15% of the following month's expected production needs. How many pounds of foam does The Posh Cushion Company need to
purchase in August?
OA. 32,100
B. 34,500
OC. 25,500
OD. 27,600

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