Question

The Howell Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 11,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 19,000 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 an­inventory of 66,000 gallons of direct materials at December 31 and has a target ending inventory of 56,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company ­purchase during the 3 months ending March 31?



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  • CreatedMay 14, 2014
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