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You sell cronks. Unit sales projections for May through September are 7,000, 8,000, 10,000, 7,000, and 9,000 units respectively. In Beginning Inventory, you have 2,000
You sell cronks. Unit sales projections for May through September are 7,000, 8,000, 10,000, 7,000, and 9,000 units respectively. In Beginning Inventory, you have 2,000 saleable cronks and 2,000 grams of DM. Each cronk requires 4 grams of DM. You have two EI policies in place:
Ending Inventory for Finished Goods (EIFG) should be 10% of the next months projected sales.
Ending Inventory for Direct Materials (EIDM) should be 20% of the next months projected usage. Complete the table below to forecast DM purchases in grams for May through July.
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