Question

Alana Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. How many units of A1 does Alana Company expect to use in production during the second month

Answer 1

12,000 units

Step-by-step explanation:

Given that,

Manufacturing a book takes:

10 units of A1

1 unit of A2

Scheduled production of books for the next two months:

First month = 1,000 units

Second month = 1,200 units

Beginning inventory:

4,000 units of A1

30 units of A2

Therefore,

Units of A1 does Alana Company expect to use in production during the second month is :

= Scheduled production of books for the second month × Units taken for manufacturing a book

= 1,200 units of production × 10 units of A1

= 12,000 units