Wynn Inc Manufactures Beanies It Takes 18 Yards of Yarn to Produce a Beanie

question 110

Essay

Wynn Inc. manufactures beanies. The budgeted units to be produced and sold are below:
$\begin{array} { l c c } & \text { Expected Production } & \text { Expected Sales } \\\text { August } & 3,500 & 2,900 \\\text { September } & 2,800 & 3,900\end{array}$
It takes 18 yards of yarn to produce a beanie. The company's policy is to maintain yarn at the end of each month equal to 5% of next month's production needs and to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated production needs. The cost of yarn is $0.20 a yard. At August 1 3150 yards of yarn were on hand.
Instructions
Compute the budgeted cost of purchases.

---

Definitions:

President Of The United States

The head of state and head of government of the United States, responsible for enforcing federal laws and serving as the commander-in-chief of the armed forces.

Economists

Professionals who study the production, distribution, and consumption of goods and services, focusing on how individuals, groups, and societies use their resources to meet their needs and wants.

Production Possibilities Frontier

An outline that conveys the peak output possibilities for two products, relying on a compilation of inputs that incorporate resources and other factors.

Mobile Phones

Portable electronic devices that allow users to make voice calls, send text messages, and access various multimedia and internet services.