Reference no: EM132960053

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

Month 1 budgeted unit sales         1,800
Month 2 budgeted unit sales        ?2,100
Month 3 budgeted unit sales        ?3,200
Month 1 budgeted unit production ?2,500
Month 2 budgeted unit production ?2,800
Month 3 budgeted unit production   ?3,400
Raw material required for each finished unit? (in pounds)  1

Each vase requires one pound of clay in its manufacture. Quality Corporation has a policy that the inventory of clay at the end of each month needs to be equal to? 30% of the production needs for the following month. At the beginning of Month? 1, 750 pounds of clay were in inventory.

Problem 1: How many pounds of clay would Quality Corporation need to purchase in Month? 2?