Question

The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: 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 30% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August?

Answer 1

Answer: 25,200 pounds

Explanation:

Your question is incomplete as it lacked the first part. I attached a completion that I found.

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.

This means that in August, the Opening inventory will be 30% of what was is needed in August and the Closing Inventory will be 30% of what is needed in September.

Remember that each cushion requires 2 pounds of foam as stuffing.

Pounds required in August

= 12,000 cushions * 2

= 24,000 pounds

Opening Stock

= 30% * (12,000 * 2)

= 7,200 pounds

Closing stock

= 30% * ( 14,000 * 2)

= 8,400 pounds.

Foam needed to be purchased in August = Pounds required tonbe produced + Closing Stock - Opening Stock

= 24,000 + 8,400 - 7,200

= 25,200

25,200 pounds of foam are what The Porch Cushion Company needs to purchase in August.