Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 7

Production and purchases budgets Gillman Co. is forecasting sales of 62,000 units of product for August. To make one unit of finished product, 5 pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are as follows:

Required:
a. Calculate the number of units of product to be produced during August.
b. Calculate the number of pounds of raw materials to be purchased during August.