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Question 1: Ritz Company expects to sell 24,000 units of?nished goods over the next 6-month period. The company has 10,000 units on hand and its managers want to have 14,000 units on hand at the end of the period. To produce one unit of?nished product, two units of direct materials are needed. Ritz has 100,000 units of direct material on hand and has budgeted for an ending inventory of 110,000 units. What is the amount of direct material to be purchased (in units)?
Option 1: 66,000
Option 2: 38,000
Option 3: 18,000
Option 4: 46,000
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