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 finished unit: 4
Required: How many units of raw materials should be purchased in the 2^ndquarter?

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 finished unit: 4
Required: How many units of raw materials should be purchased in the 2^ndquarter?

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 finished unit: 4 Required: How many units of raw materials should be purchased in the 2^ndquarter?