Riverside Manufacturing Company has prepared a sales budget…
Riverside Manufacturing Company has prepared a sales budget of 48,000 finished units for the next 3-month period. The company has 14,000 finished units on hand at the beginning of the period and wants to have 17,000 finished units on hand at the end of the period. Each finished unit requires 4 gallons of direct materials. The company has 72,000 gallons of direct materials on hand at the beginning of the period and wants to have 64,000 gallons of direct materials on hand at the end of the period. How many gallons of direct materials should Riverside Manufacturing Company purchase during the 3-month period?
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