The production planning team of Red Velvet Inc showed that each product requires 3 units of raw materials costing 10 each. The inventory manager requires that 20% of the total raw materials purchased during the month must be kept as monthly ending inventory to avoid shortage The marketing team estimates that the demand of the product is 10,000 units in September 12,000 units in October, and 15,000 units in November. The starting inventory in September for the raw materials is 7,200 units. 1. What is the total units of raw materials needed to be purchased on the month of September to meet the requirements of different departments? 2. What is the total units of raw materials needed for the production of October estimated demand?

The production planning team of Red Velvet Inc showed that each product requires 3 units of raw materials costing 10 each. The inventory manager requires that 20% of the total raw materials purchased during the month must be kept as monthly ending inventory to avoid shortage The marketing team estimates that the demand of the product is 10,000 units in September 12,000 units in October, and 15,000 units in November. The starting inventory in September for the raw materials is 7,200 units. 1. What is the total units of raw materials needed to be purchased on the month of September to meet the requirements of different departments? 2. What is the total units of raw materials needed for the production of October estimated demand?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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