Question

In addition to the information presented in Mini Exercise 14.1, each unit that ABC Company produces uses 3 pounds of raw material. ABC requires 25% of the next month's budgeted production as raw material inventory each month.
In Mini Exercise 14.1, ABC Company's budgeted sales for June, July, and August are 12,000, 16,000, and 14,000 units, respectively. ABC requires 30% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,600 units.

Required:
Calculate the number of pounds of raw material to be purchased in June.



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  • CreatedOctober 07, 2013
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