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ABC Companys budgeted sales for June, July, and August are 13,800, 17,800, and 15,400 units, respectively. ABC requires 40% of the next months budgeted unit
ABC Companys budgeted sales for June, July, and August are 13,800, 17,800, and 15,400 units, respectively. ABC requires 40% of the next months budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 5,520 units. Each unit that ABC Company produces uses 4 pounds of raw material.ABC requires 35% of the next months budgeted production as raw material inventory each month. |
Required: |
Calculate the number of pounds of raw material to be purchased in June. |
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