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A company expects to have sales of $ 1 million this quarter based on its per - unit wholesale selling price of $ 1 0

A company expects to have sales of $1 million this quarter based on its per-unit wholesale selling price of $10. The firm tries to end each quarter with 10,000 units of finished inventory in case of large, last-minute orders. At the start of the current quarter, the company has 8,500 finished units in inventory.
How many units should the firm produce this quarter?
100,000
101,500
110,000
110,500
On September 30 of Year 1, a company had raw materials inventory of 30,000 pounds. Starting in October, the company intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the next two months production needs.
Six pounds of raw materials are needed in the production of one finished unit.
Forecasted production for the months October, Year 1 through December, Year 1 is as follows:
Month Units
October 4,000 units
November 5,500 units
December 2,500 units
What is the amount of budgeted pounds of raw material to be purchased for October?
6,000
24,000
27,000
42,000

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