Sunday Company budgets on an annual basis. The following beginning and ending inventory levels (in units)...

 

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Sunday Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are planned for the year 2019. Four units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods January 1 December 31 55,000 10,000 130,000 73,000 10,000 80,000 Required: A. If Sunday Company plans to sell 235,000 units during the year, compute the number of units the company would have to manufacture during the year. (24 Points) B. If 270,000 finished units were to be manufactured by Sunday Company during the year, determine the amount of raw material to be purchased. (36 Points) Sunday Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are planned for the year 2019. Four units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods January 1 December 31 55,000 10,000 130,000 73,000 10,000 80,000 Required: A. If Sunday Company plans to sell 235,000 units during the year, compute the number of units the company would have to manufacture during the year. (24 Points) B. If 270,000 finished units were to be manufactured by Sunday Company during the year, determine the amount of raw material to be purchased. (36 Points)