Question
The Hurricanes Company manufactures Product VFT-II. The company has the following budgeted production data for VFT-II: Units of VFT-II to be produced November.......................................................................50,000 December .......................................................................40,000
The Hurricanes Company manufactures Product VFT-II. The company has the following budgeted production data for VFT-II:
Units of VFT-II to be produced November.......................................................................50,000 December .......................................................................40,000 January ...........................................................................30,000
Two feet of raw material T20 are required to make one unit of VFT-II. The company target raw material inventory level at the end of each month is 20% of the amount of raw materials to be used in production during the following month. Twenty thousand feet of T20 are expected to be on hand on November 1.
How many feet of T20 will be used in production during November?
What is the amount of required purchase for December?
Please write out the formulas for how you answered the question. Greatly Appreciated!!!
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