The Fernan Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of wine in 2019. Fernan purchases empty wine bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage. Required: Compute the number of bottles to be purchased in 2019: a. 2470000 bottles b. 2500000 bottles c. 2050000 bottles d. 2530000 bottles
The Fernan Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of wine in 2019. Fernan purchases empty wine bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage. Required: Compute the number of bottles to be purchased in 2019: a. 2470000 bottles b. 2500000 bottles c. 2050000 bottles d. 2530000 bottles
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Fernan Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of wine in 2019. Fernan purchases empty wine bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage.
Required: Compute the number of bottles to be purchased in 2019:
a.
2470000 bottles
b.
2500000 bottles
c.
2050000 bottles
d.
2530000 bottles
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