Question

Quatra Company manufactures vacuum bags and uses the JIT system. The following shows last year's demand for each quarter:

Q1	55,900 bags
Q2	58,000 bags
Q3	35,400 bags
Q4	25,800 bags

Each vacuum bag requires 200 grams of material. On average, the material costs the company $3 per 100 grams. Assume vacuum bags are delivered to customers at the end of each quarter.

Assume materials are purchased based on the JIT system. Determine how much Quatra spent on materials for each quarter.

Answer 1

	No. of Bags	Each Bag Requirement	Grams Requirement	Rate	Cost	Per Grams	Materials for each quarter
	(A)	(B)	C= A*B	D	C/D =E	F	E*F = G
Q1	55,900	200 grams	11,180,000	100 grams	111,800	3	335,400
Q2	58,000	200 grams	11,600,000	100 grams	116,000	3	348,000
Q3	35,400	200 grams	7,080,000	100 grams	70,800	3	212,400
Q4	25,800	200 grams	5,160,000	100 grams	51,600	3	154,800

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