Question

Direct material budget. Inglenook Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of Chablis in 2015. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2015.

Answer 1

2,530,000 bottles

Step-by-step explanation:

Regarding the above information, we will compute the number of bottles to be purchased in 2015 as seen below

Purchase in units = Usage + Desired ending material inventory units - Beginning inventory units

Purchase in units = 2,500,000 + 80,000 - 50,000

Purchase in units = 2,530,000

Therefore, the number of bottles to be purchases in 2015 is 2,530,000