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Production and purchases budgets Olympia Productions, Inc., makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for February is 8,000 medallions. Estimated beginning inventories and desired ending inventories for February are:
Estimated
Desired
Beginning Inventory
Ending Inventory
Medallions
4,000
3,200
Ribbon (yards)
200
80
Required:
a. Calculate the number of medallions to be produced in February.
b. Calculate the number of yards of ribbon to be purchased in February.
Rodriquez Company budgeted the following sales in units: February production in units is:
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