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ABC company produces three products A,B and C. For the coming accounting period the following sales., usage and inventories are planned. Sales Product A 1000

ABC company produces three products A,B and C. For the coming accounting period the following sales., usage and inventories are planned.

Sales

Product A 1000 @ $50 each

Product B 2000 @ $65 each

Product C 1500 @ $75 each

Usage of raw material (units of material per unit of product)

DE22 DE44 DE66

Product A 2.5 1

Product B 1.5 1 1

Product C 1 .50 1.50

Cost per unit $2.50 $1.50 $2

Ffinished inventories

Product A product B product C

Oopening 250 400 350

Closing 300 500 400

Raw Material inventory DE22 DE44 DE66

Opening 10500 5000 8000

Closing 9000 4500 6000

Ccalculate the raw materials to be purchased for each of the products.

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