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3. Target end of month finished-goods inventory is 10% of next month's sales. Miley wants raw materials ending inventory to cover 20% of next month's
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Target end of month finished-goods inventory is 10% of next month's sales. Miley wants raw materials ending inventory to cover 20% of next month's needs. The units each require 2 pieces of trim to manufacture and each trim costs $3 per piece. The units also require 2 hours of labor. The direct labor rate is $11 per hour. If May's budgeted production =4143 units \& June's budgeted production =6894 units, what is the Raw Materials (pieces of trim) to be purchased for May? Round ONLY your final answer to the nearest whole piece of trim and enter as a positive number (no sign). Do NOT round any intermediate calculations. Hint: Be careful to distinguish between finished units vs. pieces of trimStep by Step Solution
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