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Aborkian Co. is forecasting sales of 75,000 units of product for November. To make one unit of finished product, seven pounds of raw materials are
Aborkian Co. is forecasting sales of 75,000 units of product for November. To make one unit of finished product, seven pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are:
November 1 | November 30 | |
(Actual) | (Desired) | |
Raw materials (pounds) | 91,400 | 86,400 |
Finished goods | 8,500 | 9,600 |
(a.) Calculate the number of units of product to be produced during November. (b.) Calculate the number of pounds of raw materials to be purchased during November.
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