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JYD Company has budgeted sales of P90,000 units in January; 120,000 units in February; and 180,000 units in march. The Company has 20,000 units of finished goods and 35,000 pieces of materials on hand on January 1. Each unit of product requires 5 pieces of materials.
The desired inventory of finished goods and materials at the end of each month sales is as follows:
Finished goods 20% of next month sales
Materials 25% of next month's production needs
Problem 1: How many pieces of materials should the company plan to purchase in January?
a. 552, 500
b. 567, 000
c. 468, 000
d. 600, 000
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