Question: a cookie company produced a hand-processed gourmet cookie. five pounds of organic sugar are required per batch of gourmet cookies. the organic sugar costs $2.40
a cookie company produced a hand-processed gourmet cookie. five pounds of organic sugar are required per batch of gourmet cookies. the organic sugar costs $2.40 per pound. the company desires to have 20% of the following months sales in ending inventory. they also desire 20% of next months production needs of organic suagr in ending inventory to start each month. a total of 120 units, and 114 pounds of organic sugar are expected to be on hand on December 31st.
Budgeted Sales in Units for January- 570
Budgeted Sales in Units for February- 600
Budgeted Sales in Units for March- 620
Budgeted Sales in Units for April- 650
Budgeted Sales in Units for May- 675
1) How many units must be produced for each month in the first quarter?
2) How much sugar must be purchased, and what will be its budgeted cost for each month in the first quarter?
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