Question
Sartain Corp. is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods
Sartain Corp. is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.
Finished goods (units)... 20,000 (beg. inv), 70,000 (end. inv)
Raw material (grams)... 50,000 (beg. inv), 40,000 (end. inv)
Each unit of finished goods requires 2 grams of raw material.
Required: (SHOW ALL WORK)
a) If the company plans to sell 670,000 units during the year, what is the number of units it would have to manufacture during the year?
b) How much of the raw material should the company purchase during the year?
c) If the total budgeted selling and admin. expense for Oct. is $409,000, then how many Yutes does the company plan to sell in Oct.?
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