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Desired ending inventory of raw material

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Hannah company plans to sell 40,000 units of product X in June and each of these units requires 4 square feet of raw material. The pertinent data is as follows:

Product X Raw Material

Actual June 1 inventory 5,500 18,000 sq. Feet
Estimated June 30 inventory 4,300 ????? sq. Feet

If the company purchases 202,000 square feet of raw material during the month, the estimated raw-material inventory on June 30 would be:

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Solution Summary

This solution provides the steps to calculate the desired ending inventory of raw material in the given accounting problem.

Solution Preview

Estimated Production= Sales+ Desired ending inventory-Opening inventory
= 40000+ 4300-5500
= 38800 ...

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