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Homework answers / question archive / Great Company budgets on an annual basis
Great Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are planned for the year 2017. Three units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods January 1 70,000 10,000 90,000 December 31 80,000 10,000 70,000 Required: A. If Great Company plans to sell 350,000 units during the year, compute the number of units the company would have to manufacture during the year. (24 Points) B. If 390,000 finished units were to be manufactured by Great Company during the year, determine the amount of raw material to be purchased. (36 Points)
Required A):-
If Great Company plans to sell 350,000 Units during the year, Compute the No.of Units the Company would have to manufacture during the Year:-
| Particulars | Units |
| Required Sales during the Year | 350,000.00 |
| (+) Required Closing Stock at the end of the Year | 70,000.00 |
| (-) Opening Stock of Finished goods at the beginning | 90,000.00 |
| No.of Units the Company would have to manufacture during the Year | 330,000.00 |
