Mackenzie Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on
Question:
Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38.
An ounce of AM972 costs Mackenzie $0.15. An ounce of CA38 costs the company $0.25. Mackenzies inventory policy requires ending inventory equal to 20 percent of the next quarters production needs. At the beginning of the year, Mackenzie expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand.
Required
Prepare Mackenzies AM972 purchases budget for the comingyear.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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