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Craners Company budgets on a yearly basis for its fiscal year. The given beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 20x2, all through June 30, 20x3.

                            July 1, 20x2      June 30, 20x3
Raw material (note)     40,000             10,000
Work in process           8,000               8,000

Finished goods 30,000 5,000(note) three units of raw material are required to produce each unit of finished product.

If 450,000 finished units were to be manufactured throughout the 20x2-20x3 fiscal year by Craners Company, the units of raw material required to be purchased would be??

Accounting Basics, Accounting

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  • Reference No.:- M919130

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