Sohar Manufacturing plans to produce 27000 units, and 20000 units, respectively, in October, and November. Each of these units requires 3 units of part no. 879. Sohar has 31000 units of part no. 879 in stock on September 30. Management desires to maintain an ending raw- material inventory equal to 50% of the following month's production usage What will be the direct-material purchases budge for October in units.
Sohar Manufacturing plans to produce 27000 units, and 20000 units, respectively, in October, and November. Each of these units requires 3 units of part no. 879. Sohar has 31000 units of part no. 879 in stock on September 30. Management desires to maintain an ending raw- material inventory equal to 50% of the following month's production usage What will be the direct-material purchases budge for October in units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Sohar Manufacturing plans to produce 27000
units, and 20000 units, respectively, in October,
and November. Each of these units requires 3
units of part no. 879. Sohar has 31000 units of
part no. 879 in stock on September 30.
Management desires to maintain an ending raw-
material inventory equal to 50% of the following
month's production usage
What will be the direct-material purchases budget
for October in units.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd307d470-a31a-4393-8b34-0d5b472d16ae%2F140e2253-22af-48f8-bc65-0eab15a76d81%2F7jutgeg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sohar Manufacturing plans to produce 27000
units, and 20000 units, respectively, in October,
and November. Each of these units requires 3
units of part no. 879. Sohar has 31000 units of
part no. 879 in stock on September 30.
Management desires to maintain an ending raw-
material inventory equal to 50% of the following
month's production usage
What will be the direct-material purchases budget
for October in units.
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