Larsen company budgete production of widgets

Reference no: EM139793

Larsen Company makes and sells a single product, widgets. Three pounds of clay are needed to make one widget.

Budgeted production of widgets for the next few months follows:

September 58,000 units
October 62,000 units

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

Instructions

How much clay should be purchased in September?

Reference no: EM139793

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