[amaffei]

a company estimates to sell 100,000 units of Finished Goods in March. Each FG requires 5 feet of raw material. Projected March 1 inventory balances are 10,000 units of finished goods and 40,000 feet of raw materials. Desired March 31 inventory levels are 9,000 units of finished goods and 42,000 feet of raw material. What amount of raw materials should the company plan to purchase during March??

Ans is 497,000 – anyone know how to get to that answer?

[GinjaNinja]

100,000 x 5 = 500,0000
FG – 9,000 – 10,000 = (1,000) x 5 = (5,000)
RM – 42,000 – 40,000 = 2,000
500,000 – 5000 + 2,000 = 497,000

FAR: 79 (7/25/16)
AUD: 89 (10/3/16)
REG: 69 (1/9/17); 83 (8/21/17)
BEC: 74 (3/6/17); 90 (5/31/17)

 

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