Required production-raw material purchases

Reference no: EM1365237

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

January 1 December 31
Raw material 37,000 48,000
Work in process 13,000 13,000
Finished goods 81,000 54,000

Required:

If Bodin Company plans to sell 476,000 units during the year, compute the number of units the firm would have to manufacture during the year.

Required production

If 520,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.

Raw-material purchases

Reference no: EM1365237

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