Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (inunits) are plannned for the year 20x1. Five units of raw material are required to produce each unit offinished product.Raw materialWork in processFinished goodsRequired:January 141,000December 3148,00020,00020,00092,00059,0001. If Bodin Company plans to sell 452,000 units during the year, compute the number of units the firmwould have to manufacture during the year.2. If 520,000 finished units were to be manufactured by Bodin Company during the year, determine theamount of raw material to be purchased.1. Required production in units2. Raw material purchases in units

The budget is prepared to estimate the requirements for the period. The production budget is…

Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods Required: January 1 December 31 41,000 48,000 20,000 92,000 20,000 59,000 1. If Bodin Company plans to sell 452,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 520,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased. 1. Required production in units 2. Raw material purchases in units

Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods Required: January 1 December 31 41,000 48,000 20,000 92,000 20,000 59,000 1. If Bodin Company plans to sell 452,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 520,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased. 1. Required production in units 2. Raw material purchases in units

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 16E

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