Question

Relish Company expects to sell 24,000 units of finished goods over the next six months. The...

Relish Company expects to sell 24,000 units of finished goods over the next six months. The company has 10,000 units in opening inventory, and management wishes to have 14,000 units in ending inventory at the end of the six month period. To produce one unit of finished product, two units of direct materials are needed. Relish has 100,000 units in opening inventory, and is budgeting for an ending inventory of 110,000 units at the end of the six month period. What amount of direct material will need to be purchased over the six-month period?

Question 6 options:

38,000

18,000

66,000

46,000
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