Question
Q2 Budgeting material purchases budget. The Ceremicon Company produces teapots from stoneware clay. The company has prepared a sales budget of 150,000 units of teapots
Q2 Budgeting material purchases budget. The Ceremicon Company produces teapots from stoneware clay. The company has prepared a sales budget of 150,000 units of teapots for a 3-month period. It has an inventory of 34,000 units of teapots on hand at December 31 and has estimated an inventory of 38,000 units of teapots at the end of the succeeding quarter. One unit of teapot needs 2 pounds of stoneware clay. The company has an inventory of 82,000 pounds of stoneware clay at December 31 and has a target ending inventory of 95,000 pounds of stoneware clay at the end of the succeeding quarter. How many pounds of direct materials (stoneware clay) should Ceremicon purchase during the 3 months ending March 31?
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