The Canseco Company has prepared a sales budget of 42,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 16,000 units at the end of the succeeding quarter It takes 3 gallons of direct materials to make one unit of finished product. The company has inventory of 60,000 gallons of direct materials at December 31 and has a target ending inventory of 53,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Canseco Company purchase during the 3 months ending March 31?

The Canseco Company has prepared a sales budget of 42,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 16,000 units at the end of the succeeding quarter It takes 3 gallons of direct materials to make one unit of finished product. The company has inventory of 60,000 gallons of direct materials at December 31 and has a target ending inventory of 53,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Canseco Company purchase during the 3 months ending March 31?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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