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Question(s) / Instruction(s):

Q-1.

Olympia Productions, Inc., makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for February is 2,300 medallions. Estimated beginning inventories and desired ending inventories for February are:

                Estimated

Beginning Inventory       Desired

Ending Inventory

  Medallions                       1,300                                    780        

  Ribbon (yards)                               90                                          27          

Required:

(a)          Calculate the number of medallions to be produced in February.

 (b)         Calculate the number of yards of ribbon to be purchased in February.

 

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