Question
Pardise Company plans the following beginning and ending inventory levels (in units) for July: july 1 july 30 raw material 40,000 50,000 work in process
Pardise Company plans the following beginning and ending inventory levels (in units) for July:
july 1 july 30
raw material 40,000 50,000
work in process 10,000 10,000
finished goods 80,000 50,000
*Two units of raw material are needed to produce each unit of finished product.
1.If Pardise Company plans to sell 480,000 units during July, the number of units it would have to manufacture during July would be:
a. 510,000
b.450,000
c. 440,000
d.480,000
2.If 500,000 finished units were to be manufactured during July, the units of raw material needed to be purchased would be:
a. 1,020,000
b. 1,000,000
c. 1,010,000
d. 990,000
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