Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 5,000; second quarter 6,000; third quarter 7,000. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 7,350 units. The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sales units:
Ending raw materials inventory:
Ending finished goods inventory:
Third-quarter production:
First quarter 5,000; second quarter 6,000; third quarter 7,000.
40% of the next quarter's production requirements.
25% of the next quarter's expected sales units.
7,350 units.
The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to
production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw
materials purchased are expected to cost $4 per pound.
Transcribed Image Text:Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 5,000; second quarter 6,000; third quarter 7,000. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 7,350 units. The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.
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