Question
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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