The Canseco Company has prepared a sales budget of 42,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 16,000 units at the end of the succeeding quarter It takes 3 gallons of direct materials to make one unit of finished product. The company has inventory of 60,000 gallons of direct materials at December 31 and has a target ending inventory of 53,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Canseco Company purchase during the 3 months ending March 31?

The Canseco Company has prepared a sales budget of 42,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 16,000 units at the end of the succeeding quarter It takes 3 gallons of direct materials to make one unit of finished product. The company has inventory of 60,000 gallons of direct materials at December 31 and has a target ending inventory of 53,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Canseco Company purchase during the 3 months ending March 31?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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