Rhett Co. manufactures and sells dress shirts. Each shirt requires 3 yard of cloth. Budget data is shown below:
Shirts: April May June
Budgeted sales: 26,000 28,000 32,000
Budgeted production 28,000 32,000 36,000
Desired ending inventory in yards of cloth 2,100 2,800 3,000
Problem: Calculate the number of yards of cloth that Rhett Co. plans to purchase in May.© BrainMass Inc. brainmass.com June 3, 2020, 10:12 pm ad1c9bdddf
The number of yards needed = Yards needed for Production + Ending inventory
The solution explains how to calculate the number of yards of cloth to purchase.