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    Devry University
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Category > Accounting Posted 21 Dec 2017 My Price 10.00

Dante Ltd prepares annual budgets.

                                         

Dante Ltd prepares annual budgets. The following beginning and ending inventory levels (in units) are planned for next year. Four kilograms of direct material are required to produce each unit of finished product.

 

                                             I January                                                                     31 December

Direct Material                                                            80,000                                                                           100,000

Work in Progress                                                        20,000                                                                            20,000

Finished Goods                                                           160,000                                                                         100,000

 

Required: 

1) If Dante plans to sell 480,000 units during the year, calculate the number of units the firm would have to manufacture.

2) If 600,000 finished units are to be manufactured by Dante during the year, determine the amount of direct material that needs to be purchased.

Answers

CourseLover
(12)
Status NEW Posted 21 Dec 2017 06:12 AM My Price 10.00

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