Question
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Three units of
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Three units of raw material are required to produce each unit of finished product.
| January 1 | December 31 | |||||
| Raw material | 43,000 | 49,000 | ||||
| Work in process | 13,000 | 13,000 | ||||
| Finished goods | 82,000 | 75,000 | ||||
Required:
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If Bodin Company plans to sell 464,000 units during the year, compute the number of units the firm would have to manufacture during the year.
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If 508,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.
Required production in units ---- 457,000
Raw Material purchases in units --- ??
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118147290
