Business, 25.04.2020 03:49 tybtookie

A sales budget is given below for one of the products manufactured by the OMI Co.:

January 25,000 units
February 40,000 units
March 65,000 units
April 45,000 units
May 35,000 units
June 30,000 units

The inventory of finished goods at the end of each month must equal 20% of the next month's sales. However, on December 31, the finished goods inventory totaled only 4,000 units. Each unit of product requires three kilograms of specialized material. Since the production of this specialized material by OMI's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs. This requirement had been met on January 1 of the current year.
Required:
Prepare a budget showing the quantity of material to be purchased each month for January, February, and March, and in total for the quarter.

Answers: 2

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A sales budget is given below for one of the products manufactured by the OMI Co.:

Janu...

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