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Section B:--Production Budget The ASU Company manufactures a special line of graphic tubing items. The company estimates it will sell 75,000 units of this item
Section B:--Production Budget The ASU Company manufactures a special line of graphic tubing items. The company estimates it will sell 75,000 units of this item in 2020. The beginning finished goods inventory contains 20,000 units. The target for each year's ending inventory is 10,000 units. Each unit requires five feet of plastic tubing. The tubing inventory currently includes 70,000 feet of the required tubing. Materials on hand are targeted to equal three months' production. Sales take place evenly throughout the year. a. Compute the targeted production of the finished product (units) for 2020. b. Compute the required amount of plastic tubing (feet) to be purchased for 2020
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