Business, 17.04.2020 02:57 aaliyahettorre

He Peterson Company has prepared a sales budget of 40 comma 000 finished units for a 3-month period. The company has an inventory of 10 comma 000 units of finished goods on hand at December 31 and has a target finished goods inventory of 19 comma 000 units at the end of the succeeding quarter. It takes 4 gallons of direct materials to make one unit of finished product. The company has inventory of 65 comma 000 gallons of direct materials at December 31 and has a target ending inventory of 51 comma 000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Peterson Company purchase during the 3 months ending March 31? Select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased. Direct Material Purchases Budget For the 3 Months Ending March 31 To be used in production Add target ending inventory 51000 Total requirements Deduct beginning inventory 65000 Purchases to be made (in gallons)

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He Peterson Company has prepared a sales budget of 40 comma 000 finished units for a 3-month period....

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