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
Problem 1Q
Related questions
Question
100%

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.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education