Answer:
Flour purchase requirement:
July 898 pounds of Flour ($1,796)
August 1,076 pounds of Flour ($2,152)
September 976 pounds of flour ($1,952)
Q3 purchase requirement = 2,950 pounds (valued at $5,900)
Explanation:
July
Flour requirement = 1/2 x [(100% x 1,540) + (20% x 1,820)] = 1/2 x (1540 + 364) = 952 pound of Flour
But Opening stock is 154
Flour to be purchased in July = 898 pounds of flour (at $2 per pound) = $1,796
August
Flour requirement = 1/2 x [(100% x 1,820) + (20% x 1,660)] = 1/2 x (1820 + 332) = 1,076 pounds of Flour
Flour to be purchased in August = 1076 pounds of flour (at $2 per pound) = $2,152
September
Flour requirement = 1/2 x [(100% x 1,660) + (20% x 1,460)] = 1/2 x (1660 + 292) = 976 pounds of Flour
Flour to be purchased in August = 976 pounds of flour (at $2 per pound) = $1,952
