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Dockille, Inc

Question 56

Essay

Dockille, Inc., is preparing its budget for the second quarter of the calendar year.The following sales data (in units) have been forecasted: Dockille, Inc., is preparing its budget for the second quarter of the calendar year.The following sales data (in units) have been forecasted: Additional information: Desired ending inventory each month—Finished goods: 30% of next month's sales Desired ending inventory each month—Raw materials: 25% of next month's production needs Number of raw material units required per unit of finished product: 4 Required: How many units of raw materials should be purchased in the 2<sup>nd</sup> quarter? Additional information:

Desired ending inventory each month—Finished goods: 30% of next month's sales
Desired ending inventory each month—Raw materials: 25% of next month's production needs
Number of raw material units required per unit of finished product: 4
Required:
How many units of raw materials should be purchased in the 2nd quarter?

Correct Answer:

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