Homework Answers
a.
Production of finished product in 2020 = Sales + Ending inventory of finished goods - Beginning inventory of finished goods
= 75,000 + 10,000 - 20,000
= 65,000 units
b.
Plastic tubing required per unit of finished product = 5 feet
Production = 65,000 units
Plastic required for production = Plastic tubing required per unit of finished product x Production
= 5 x 65,000
= 325,000 feet
Beginning inventory of plastic tubing = 70,000 feet
Ending inventory of plastic tubing = 65,000 x 3/2 x 5
= 81,250
Plastic tubing to be purchased = Plastic required for production + Ending inventory of plastic tubing - Beginning inventory of plastic tubing
= 325,000 + 81,250 - 70,000
= 336,250 feet
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