Question
n September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy
n September 30 of Year 1, JayBob Company had raw materials inventory of 5,000 pounds. Starting in October, JayBob intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the nextONEmonth's production needs. For example, ending inventory at the end of October should be equal to forecasted raw materials needs for November production.
Fourpounds of raw materials are needed in the production ofonefinished unit.
Forecasted PRODUCTION for the months October, Year 1 through December, Year 1 is as follows.
October4,300 units
November1,000 units
December700 units
What is the amount of budgeted RAW MATERIALS PURCHASES forOctober?
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