Reference no: EM132795096

Projected sales for Nath Inc. for next year, with beginning and ending inventory information, are as follows:

Unit price                       $60

Sales                         50,000 units

Beginning inventory          16,000 units

Targeted ending inventory     20,000 units

• Each unit requires four kilograms of material, which costs $6 per kilogram. The beginning inventory of raw materials is 12,000 kilograms.
• Nath Inc. wants to have 14,000 kilograms of material in inventory at the end of the year.
• Each unit produced requires three hours of direct labour, which costs $22 per hour.

Required -

Question 1: How many units will need to be manufactured next year?

Question 2: How many kilograms will have to be purchased next year?

Question 3: What is the total direct labour budget for the year?