Alder company budgets on an annual basis the following

Reference no: EM13599478

Alder Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are planned for the next year. Two units of raw materials are required to produce each unit of finished product.

January 1 December 31
Raw material 245,000 315,000
Work in process 84,000 84,000
Finished goods 560,000 350,000

Required:

1) If Alder Company plans to sell 3,360,000 units during the year, compute the number of units the firm would have to manufacture during the year.

2) If 3,500,000 finished units were to be manufactured by Alder Company during the year, determine the amount of raw material to be purchased.

Reference no: EM13599478

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