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1.A business has the following budgeted financial data for next year: January production units8,000 February production units9,000 Direct material units per finished unit4 Cost per
1.A business has the following budgeted financial data for next year:
January production units8,000
February production units9,000
Direct material units per finished unit4
Cost per direct material unit$1.50
January raw materials beginning inventory units 5,000
The business desires to maintain a raw materials ending inventory equal to meeting the production needs of 10% of the next month's production units (assume there are no indirect materials).
Determine the required raw material purchase units AND purchase dollars for January.
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