Question

In the preparation of the sales budget for the next three-month period, the Westing Company determined that 52,250 finished units would be needed to fulfill sales obligations. The company has an inventory of 27,300 units of finished goods on hand at December 31 and has a target finished goods inventory of 29,400 units at the end of the succeeding quarter.
It takes three litres of direct materials to make one unit of finished product. The company has an inventory of 117,350 litres of direct materials at December 31 and has a target ending inventory of 110,000 litres.
REQUIRED
How many litres of direct materials should be ordered for delivery during the three months ending March 31?


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  • CreatedJuly 31, 2015
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