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John Company expects to sell 46,920 units of finished goods over the next three-month period. The company has 18,040 units on hand and its managers
John Company expects to sell 46,920 units of finished goods over the next three-month period. The company has 18,040 units on hand and its managers want to have 29,040 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 112,690 units of direct material on hand and has budgeted for an ending inventory of 162,700 units. What is the amount of direct material to be purchased (in units)?
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