Solving for materials requirements. Lyndhurst Company expects to sell 42.000 units of finished goods over the next
Question:
Solving for materials requirements. Lyndhurst Company expects to sell 42.000 units of finished goods over the next 3-month period. The company currently has 22.000 units of finished goods on hand and wishes to have an inventory of 24.000 units at the end of the 3-month period. To produce 1 unit of finished goods requires 4 units of raw„materials. The company currently has 100.000 units of raw materials on hand and wishes to have an inventory of 1 10.000 units of raw materials on hand at the end of the 3-month period. The company does not have, nor does it wish to have, work-in-process inventory.
How many units of raw materials must the Lyndhurst Company purchase during the 3-month period?
Step by Step Answer:
Managerial Accounting An Introduction To Concepts Methods And Uses
ISBN: 9780030259630
7th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson