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Hurtt's Java Seeds is an independent roaster of specialty coffee beans. The company budgets 2 months ahead, so that in early January, it is time to...
Hurtt's Java Seeds is an independent roaster of specialty coffee beans. The company budgets 2 months ahead, so that in early January, it is time to plan for March. During March, the company plans to sell 10,000 pounds of beans. At the end of February, the company expects to have 6,000 pounds of raw green coffee beans (costing $5,000) and 800 pounds of roasted beans (costing $4,000) in inventory. Hurtt's would like to have 1,400 pounds of green coffee beans and 500 pounds of roasted beans in inventory at the end of March. Hurtt's purchases green coffee beans from the grower at $3 per pound and sells the roasted beans for $15 per pound.
