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Answer :
Final answer:
To calculate the number of wheels JacKue should purchase during January, we need to consider the production and the sales.
Explanation:
JacKue Co. plans to produce 200,000 pairs of roller skates during January and 250,000 pairs in February. Sales are forecasted at 180,000 pairs for January and 240,000 pairs for February. Each pair of roller skates has eight wheels. The policy is to maintain 10% of the next month's production in inventory at the end of a month. To calculate the number of wheels JacKue should purchase during January, we need to consider the production and the sales.
Production for January = 200,000 pairs x 8 wheels/pair = 1,600,000 wheels
Production for February = 250,000 pairs x 8 wheels/pair = 2,000,000 wheels
Sales for January = 180,000 pairs x 8 wheels/pair = 1,440,000 wheels
Sales for February = 240,000 pairs x 8 wheels/pair = 1,920,000 wheels
Ending inventory for January = 10% x production for February = 10% x 2,000,000 wheels = 200,000 wheels
Number of wheels to purchase during January = production for February - sales for January + ending inventory for January = 2,000,000 wheels - 1,440,000 wheels + 200,000 wheels = 760,000 wheels
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