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John Company expects to sell 45,070 units of finished goods over the next three-month period. The company has 21,540 units on hand and its managers
John Company expects to sell 45,070 units of finished goods over the next three-month period. The company has 21,540 units on hand and its managers want to have 27,060 units on hand at the end of the period. To produce one unit of finished product, 5 units of direct materials are needed. John has 103,090 units of direct material on hand and has budgeted for an ending inventory of 150,520 units. What is the amount of direct material to be purchased (in units)?
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