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What effect would that have on the amount of materials

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Question - XYZ Company provides you with the following data projected for 2018: Projected sales are 30,000 units. Inventory at Dec 31, 2017 was 4,000 manufactured units.  The desired ending for Dec 31, 2018 is 8,000 manufactured units.

a) Provide a production budget for the number of units that need to be produced.

b) Assume for each unit manufactured, four pounds of raw materials are needed. Assume the desired ending inventory became 10,000 manufactured units. What effect would that have on the amount of materials to be purchased and by how much?

Reference no: EM133092350

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