Beloved Baby Company manufactures and sells children's strollers. Each stroller requires eight screws. For September, Beloved Baby Company will begin September with
360
screws in its beginning inventory. Beloved Baby Company has budgeted stroller sales of
570
strollers, while
590
strollers are scheduled to be produced. How many screws should Beloved Baby Company purchase in September?
A.
5,080
B.
4,720
C.
4,360
D.
210
| Number of units to be produced | 590 |
| Screws required per unit | 8 |
| Total screws required (590*8) | 4,720 |
| Add: Beginning screws inventory | 360 |
| Screws to be purchased | 5,080 |
Answer is A. 5,080
Please note that, desired ending inventory not given in question, so assumed that, no ending inventory.
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Purchases = (Scheduled production X 8 screws) - Beginning inventory
=> (590 strollers X 8 screws) - 360 screws
=> 4360 purchases for september (Ans)
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