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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.
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