Question - ABC Co. has budgeted sales (in units) for the next three months:
|
June
|
2,000
|
|
July
|
1,600
|
|
August
|
1,000
|
The company maintains Ending Inventory for each month equal to 20% of the next month's sales in units. The inventory on May 31 contained 400 units. Given these facts how many units would the company budget to produce in July?
Given the production requirements for June and July, what would be the budgeted raw materials purchase for June if 4 pound of raw materials are needed for each unit produced? Beginning Raw Materials Inventory was 800 pounds. The company budgets Ending Raw materials as 10% of the next month's raw materials used in production.