10.00 points Exercise 14-8 Production and purchases budgets LO 4, 5 Gillman Co.

Question

10.00 points Exercise 14-8 Production and purchases budgets LO 4, 5 Gillman Co. is forecasting sales of 61,800 units of product for August. To make one unit of finished product, 5 pounds of raw materials are required Actual beginning and desired ending inventories of raw materials and finished goods are as follows: August 1 August 31 73,600 5,000 68,800 8,960 Required a. Calculate the number of units of product to be produced during August r of units be produced b. Calculate the number of pounds of raw materials to be purchased during August 853 PM 11/28/2017 Type here to search

Explanation / Answer

a)no of units to be produced in august=Sales in august+ending finished goods-Beg finished goods
=61800+8960-5000
=65760
b)Raw material purchased=Raw material in production+Ending inventory-begininign inventory
=(65760*5)+68800-73600
=324000

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