Dockille, Inc., is preparing its budget for the second quarter of the calendar year.The following sales data (in units) have been forecasted: Additional information:

Desired ending inventory each month—Finished goods: 30% of next month's sales
Desired ending inventory each month—Raw materials: 25% of next month's production needs
Number of raw material units required per unit of finished product: 4
Required:
How many units of raw materials should be purchased in the 2^nd quarter?

Question

Dockille, Inc., is preparing its budget for the second quarter of the calendar year.The following sales data (in units) have been forecasted:

Additional information:

Desired ending inventory each month—Finished goods: 30% of next month's sales
Desired ending inventory each month—Raw materials: 25% of next month's production needs
Number of raw material units required per unit of finished product: 4
Required:
How many units of raw materials should be purchased in the 2^nd quarter?

Quizplus · Accepted Answer

The Answer of Dockille, Inc., is preparing its budget for the second quarter of the calendar year.The following sales data (in units) have been forecasted: Additional information: Desired ending inventory each month—Finished goods: 30% of next month's sales Desired ending inventory each month—Raw materials: 25% of next month's production needs Number of raw material units required per unit of finished product: 4 Required: How many units of raw materials should be purchased in the 2^nd quarter?