New York University ACCT-UB ACCT-UB 1002 1. A firm has provided a sales budget for the next 4 months. It…
Princess Inc. produces speaker systems for cars. Estimated sales (in units) in January are 40,000; in February 37,000; and in March 34,000. Each unit is priced at $60. Princess wants to have 35% of the following month’s sales in ending inventory. That requirement was met on January 1. Each speaker system requires 3 boxes and 15 yards of wire. Boxes cost $4 each and wire is $0.60 per yard. Princess wants to have 20% of the following month’s production needs in ending raw materials inventory. On January 1, Princess had 24,000 boxes and 100,000 yards of wire in inventory. How many boxes does Princess expect to purchase in January?
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