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Projected sales for Sommers, Inc. for the next year and beginning and ending inventory data are as follows: Sales in units 50,000 Beginning inventory in
Projected sales for Sommers, Inc. for the next year and beginning and ending inventory data are as follows:
Sales in units | 50,000 |
Beginning inventory in units | 40,000 |
Targeted ending inventory in units | 44,000 |
The selling price is $40 per unit. Each unit requires four kilos of material which costs $6 per kilo. The beginning inventory of raw materials is 12,000 kilos. The company wants to have 3,000 kilos of material in inventory at the end of the year.
How many kilos of material would Sommers need to purchase?
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