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Abrams Bottling Company Sells Fruit-Flavored Colas

Question 113

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Abrams Bottling Company sells fruit-flavored colas. Estimated sales in cartons for May, June, and July are 1,000, 3,000 and 5,000 respectively. The price is forecast at $5 per carton. Abrams requires that finished goods ending inventory be 20% of the next month's sales. Inventory was 500 units on May 1. Each carton requires 12 oz of fruit syrup and 130 oz of carbonated water. Materials ending inventory is 10% of the next month's production needs. May 1 inventory met that requirement.
Abrams Bottling Company sells fruit-flavored colas. Estimated sales in cartons for May, June, and July are 1,000, 3,000 and 5,000 respectively. The price is forecast at $5 per carton. Abrams requires that finished goods ending inventory be 20% of the next month's sales. Inventory was 500 units on May 1. Each carton requires 12 oz of fruit syrup and 130 oz of carbonated water. Materials ending inventory is 10% of the next month's production needs. May 1 inventory met that requirement.

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