Solution-Compute the number of units the firm would have

Compute the number of units the firm would have

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Reference no: EM132971054

Question - Tsao Company budgets on an annual basis. Three units of raw material are required to produce each unit of finished product. The company is projecting 70,000 units in beginning inventory for finished goods and 50,000 units in beginning inventory for raw materials. Desired ending inventory for finished goods is 30% of the following year's budgeted sales. Desired ending inventory for raw materials is 80,000 units.

Required -

A. If Tsao Company plans to sell 380,000 units during the current year and 480,000 during next year, compute the number of units the firm would have to manufacture during the year.

B. Based on A, determine the amount of raw material to be purchased.

Reference no: EM132971054

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Compute the number of units the firm would have

Reference no: EM132971054

Reference no: EM132971054

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