The Rouse Company has prepared a sales budget of 41,000 finished units for a 3-month period. The company has an inventory of 15,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 17,000 units at the end of the succeeding quarter.

It takes 4 gallons of direct materials to make one unit of finished product. The company has inventory of 68,000 gallons of direct materials at December 31 and has a target ending inventory of 54,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Rouse Company purchase during the 3 months ending March 31?

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Direct Material Purchases Budget For the 3 Months Ending March 31 Purchases to be made (in gallons) Direct Material Purchases Budget For the 3 Months Ending March 31 Purchases to be made (in gallons)

Answer rating: 100% (QA)

Given Information related to units In units Sales budget 41000 Beginning finished good inventory 150... View the full answer