1 PROBLEM 8-7
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.
a. Budgeted revenue for May is $ ________ .
b. Budgeted revenue for July is $ ________ .
c. Production in May is ________ cartons.
d. Production in June is ________ cartons.
e. Purchases of syrup in May is ________ ounces.
f. Purchases of carbonated water in May is ________ ounces.

Have a go at doing the work.
May I suggest that you answer all questions
for all the months.
It will be easier to work out.

We shall have a look at your effort in good time.
You must be aware that we are not allowed to answer homework questions.