Uecker Company budgets on an annual basis. The planned beginning and ending inventory levels (in units) for the fiscal year of July 1, 2010, through June 30, 2011, for one of its products, XPL30, are as follows:

Two units of raw materials are needed to complete one unit of finished product. All materials are added at the beginning of production. The firm completes all work-in-process before starting a new batch and plans to sell 480,000 units during the 2010 2011 fiscal year.

Number of units of raw materials per one unit of finished product						2
Planned production						480,000

Required

1. How many units of XPL30 must Uecker Company complete in fiscal 2010?

2. How many units of XPL30 must Uecker Company start into production during the 2010–2011 fiscal year?

3. How many units of raw materials must Uecker Company purchase during the 2010–2011 fiscal year?

4. In general, how would your answer change if the company adds all require materials immediately before completion of the manufacturing process forXPL30?

Transcribed Image Text:

July 1, 2010 June 30, 2011 Raw materials 40,000 10,000 50,000 20,000 Work in process Finished goods 80,000 50,000