Question:
Production and purchases budgets Pelican Co. is forecasting sales of 40,300units of product for October. To make one unit of finished product, 10 pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are:
|
October 1
|
October 31
|
|
(Actual)
|
(Desired)
|
|
Raw materials (pounds)
|
48,550
|
44,300
|
|
Finished goods (units)
|
3,850
|
5,400
|
Required:
a. Calculate the number of units of product to be produced during October.
b. Calculate the number of pounds of raw materials to be purchased during October.