Question
Month Unit Sales January 3500 February ?3,800 March ?3,300 April 5000 May ?5,000 Beginning finished goods inventory consisted of 850 units. The desired inventory of
Month Unit Sales January 3500 February ?3,800 March ?3,300 April 5000 May ?5,000 Beginning finished goods inventory consisted of 850 units. The desired inventory of units at the end of each month in the upcoming year should equal? 25% of the following? months budgeted unit sales. Each unit requires 4 yards of fabric. The company wants to have? 20% of the fabric required for the next? months expected production on hand at the end of each month. This inventory requirement was met at the end of the previous year. The fabric costs? $0.20 per yard. What is the expected dollar amount of raw material purchases for the first quarter of the upcoming? year?
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