Compute the number of units firm would have to manufacture

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Reference no: EM132632626

Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Four units of raw material are required to produce each unit of finished product.

                                                January 1                             December 31

Raw material                             44,000                           48,000

Work in process                          15,000                            15,000

Finished goods                              91,000                              74,000

Required:

Question 1: If Bodin Company plans to sell 452,000 units during the year, compute the number of units the firm would have to manufacture during the year.

Question 2: If 507,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.

Reference no: EM132632626

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