Question
Gillman Co. is forecasting sales of 62,400 units of product for August. To make one unit of finished product, 5 pounds of raw materials are
Gillman Co. is forecasting sales of 62,400 units of product for August. To make one unit of finished product, 5 pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are as follows:
| August 1 (Actual) | August 31 (Desired) | |||||
| Raw materials (pounds) | 73,000 | 67,900 | ||||
| Finished goods (units) | 5,310 | 8,520 | ||||
Required:
a. Calculate the number of units of product to be produced during August.
b. Calculate the number of pounds of raw materials to be purchased during August.
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
