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Please solve the following question, show calculations Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels

Please solve the following question, show calculations

Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 2004 through June 30, 2005.

July 1, 2004 June 30, 2005

Raw material1 40,000 10,000

Work-in-process 8,000 8,000

Finished goods 30,000 5,000

1 Three (3) units of raw material are needed to produce each unit of finished product.

[CMA Adapted] If Hester Company plans to sell 500,000 units during the 20042005 fiscal year, the number of units it would have to manufacture during the year would be

a. 505,000 units.

b. 500,000 units.

c. 480,000 units.

d. 475,000 units.

[CMA Adapted] If 450,000 finished units were to be manufactured during the 20042005 fiscal year by Hester Company, the units of raw material needed to be purchased would be

a. 1,350,000 units.

b. 1,360,000 units.

c. 1,320,000 units.

d. 1,330,000 units.

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