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5) King purchases two components for its one product. They need 3 of Component A and 2 of Component B for each unit of the
5) King purchases two components for its one product. They need 3 of Component A and 2 of Component B for each unit of the product. Component A costs $3; Component B costs $5. Forecasted Finished Good / Product Production: January: 19,500 units February: 19,600 units March: 23,000 units April: 27,600 units Ending component inventory should equal 20% of next month's production needs. Assume December's raw material/component ending inventory met this requirement. Calculate purchases for both Components in both units and dollars by month for Q1. (10 Points) Calculate ending raw material balances in units for each component as of March 31 (5 points)
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