Ortiz companys sales budget projects unit sales of part

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Ortiz Company's sales budget projects unit sales of part 198Z of 10,100 units in January, 12,300 units in February, and 13,300 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $2 per pound. Ortiz Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2010.

Reference no: EM13599175

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