John Company expects to sell 48,000 units of finished goods over the next three-month period. The company

Question:

John Company expects to sell 48,000 units of finished goods over the next three-month period. The company has 20,000 units on hand and its managers want to have 28,000 units on hand at the end of the period. To produce one unit of finished product, four units of direct materials are needed. John has 100,000 units of direct material on hand and has budgeted for an of 150,000 units. What is the amount of direct material to be purchased (in units)?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...