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    Number of pounds of raw materials to be purchased

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    Pelican Co. is forecasting sales of 40,300 units 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(Actual) October 31 (Desired)
    Raw materials (pounds) 48,550 44,300
    Finished goods (units) 3,850 5,400

    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.

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    Pelican Co. is forecasting sales of 40,300 units 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 ...

    Solution Summary

    Thr response provides steps to compute production budget, purchase budget.

    $2.19