Direct material budget
Response to the following problem:
Inglenook Co. produces wine. The company expects to produce 2500,000 two-liter bottles of Chablis in 2010. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity ignore breakage. Compute the number of bottles to be purchased in 2010.