Question

Each vase requires one pound of clay in its manufacture. Victoria Corporation has a policy that the inventory of clay at the end of each month needs to be equal to ​% of the production needs for the following month. At the beginning of​ January, pounds of clay were in inventory. How many pounds of clay would Victoria Corporation need to purchase in February​ (Month 2)?

Answer 1

Answer:

2,840 pounds

Explanation:

The question is incomplete:

Victoria Corporation manufactures quality vases. Budgeted sales and production data for the vases are as follows:

Month 1 budgeted unit sales 2,000

Month 2 budgeted unit sales 2,500

Month 3 budgeted unit sales 3,200

Month 1 budgeted unit production 2,400

Month 2 budgeted unit production 2,700

Month 3 budgeted unit production 3,400

Raw material required for each finished unit (in pounds) 1

The ending inventory for each month should be equal to 20% of the next month's production needs. Each vase requires one pound of clay in its manufacture. Victoria Corporation has a policy that the inventory of clay at the end of each month needs to be equal to 20% of the production needs for the following month. At the beginning of January, 480 pounds of clay were in inventory. How many pounds of clay would Victoria Corporation need to purchase in February (Month 2)?

Materials budget

                                                      January            February

Units to be produced                   2,400               2,700

Clay per unit                                     1                         1              

Total clay needed for px              2,400               2,700

+ desired ending inv.                       540                  680          

Total materials required               2,940               3,380

- beginning inventory                     -480                 -540          

Purchase requirements                2,460               2,840

Answer 2

Answer:

The answer is oviously 2840 pounds