Question
Please give explanation of the answer for Resear desires to hold a finished goods inventory equal to 100% of the next month's sales requirement of
Please give explanation of the answer for Resear desires to hold a finished goods inventory equal to 100% of the next month's sales requirement of modems. The beginning finished goods inventory is 1,200 units. Forecasted unit sales for April and the next three months are as follows: April May June July 800 850 925 1,000 The production of one finished unit requires 5 pounds of raw material. The company desires to have a one-month supply of raw materials as the ending inventory for each month. The beginning inventory of raw materials is 6,190 pounds. What is a direct materials purchases budget (in pounds) for April?
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