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Projected sales for Nath Inc. for next year, with beginning and ending inventory information, are as follows: Unit price $60 Sales 50,000 units Beginning inventory
Projected sales for Nath Inc. for next year, with beginning and ending inventory information, are as follows:
Unit price
$60
Sales
50,000 units
Beginning inventory
16,000 units
Targeted ending inventory
20,000 units
Each unit requires four kilograms of material, which costs $6 per kilogram. The beginning inventory of raw materials is 12,000 kilograms.
Nath Inc. wants to have 14,000 kilograms of material in inventory at the end of the year.
Each unit produced requires three hours of direct labour, which costs $22 per hour.
Required -
- How many units will need to be manufactured next year?
- How many kilograms will have to be purchased next year?
- What is the total direct labour budget for the year?
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