Question :
Able Company expects to start the coming year with 12,000 units of product X in the inventory of completed goods. It expects to sell 130,000 units of the product and end the year with 15,800 units in completed goods inventory. Five pounds of material A go into each unit of product X. The company expects to have 2,000 pounds of material A on hand at the starting of the coming year and wished to end the year with 3,400 pounds in inventory.
a. Refer to Able Company. Determine the number of units of product X that the company has to manufacture in carrying out these plans.
b. Refer to Able Company. Evaluate the number of pounds of material A the company must purchase during the year.