Find how much clay should be purchased in september

Reference no: EM1374031

Larsen Company manufactures and sells a single product, widgets. Three pounds of clay are required to make one widget. Budgeted production of widgets for the subsequently few months follows:
September 58,000 units

October 62,000 units

The company needs to maintain monthly ending inventories of clay equal to 20% of the subsequent month's production required. On August 31, 18,000 pounds of clay were on hand.

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Find how much clay should be purchased in September?

Reference no: EM1374031

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