Last Updated on 01/22/2023 by Sophia
6-19: Budgeting material purchase budget The Howell Company has prepared a sales budget of 43,000finished units for a 3-month period. The company has an inventory of 11,000units of finished goods on hand at December 31 and has a target finished goods inventory of 19,000units at the end of the succeeding quarter. It takes 4gallons of direct materials to make one unit of finished product. The company has an inventory of 66,000 gallons of direct materials at December 31 and has a target ending inventory of 56,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Howell Company purchase during the 3 months ending March 31?