Questions
2025Summer-ACC2002-02 Quiz 4 - Budgeting
Single choice
Coles Company, Inc. makes and sells custom designed window shades to large stores such as Home Depot. The window shades are designed to customer specifications and produced after an order is received. Shades are shipped immediately upon completion of each job. Budgeted sales of window shades for the next three months are (in units): August 15,000 September 16,000 October 15,500 Each shade requires four yards of fabric that Coles purchases from an outside supplier. Coles has 18,000 yards of fabric on hand at the end of July. Coles wants to carry an ending inventory of fabric equal to 30% of the estimated sales for the following month. Assuming the forecasted sales are accurate, how many window shades will Coles Company produce in August?
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Step-by-Step Analysis
We need to determine how many window shades Coles Company will produce in August.
First, convert the production quantity to fabric yard requirements: each shade uses 4 yards of fabric.
Budgeted August sales = 15,000 units. Fabric required for August production = 15,000 uni......Login to view full explanationLog in for full answers
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