# Saphire, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Saphire markets two products: 12-ounce

## Question:

Saphire, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Saphire markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers.

Required

1. For 2018, Saphire marketing managers project monthly sales of 500,000 12-ounce bottles and 130,000 1-gallon containers. Average selling prices are estimated at \$0.30 per 12-ounce bottle and \$1.60 per 1-gallon container. Prepare a revenues budget for Saphire, Inc., for the year ending December 31, 2018.

2. Saphire begins 2018 with 980,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 660,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Saphire must produce during 2018?

3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Saphire to produce 1,200,000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018?

Ending Inventory
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 =...