Question
Help me. Part 3. 1. WFU Corporation expects the unit sales of Product MSA to increase by 10%, while Product MA will increase by 5%
Help me. Part 3.
1. WFU Corporation expects the unit sales of Product MSA to increase by 10%, while Product MA will increase by 5% of last years sales. The company will increase the price of Product MSA by $10, while Product MA will remain the same. Prepare the budgeted revenue for the upcoming year, 20Y6 with the information below for 20Y5.
Units Sales Selling Price per Unit
Product MSA | 15,000 | $100.00 |
Product MA | 10,000 | 75.00 |
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2. WFU Corporation has a desired ending inventory of 5% of the upcoming years sales for each year. In 20Y7, the company expects to sell 20,000 of Product MSA and 12,000 of Product MA. Prepare the companys production budget for 20Y6.
3. Each finished good of Product MSA and Product MA requires two materials, Product M and Product A, which are measured in pounds. Product M costs $7.50 per pound, and Product A costs $5.00 per pound. The required pounds of material per finished good and beginning and ending inventories are shown. Prepare the 20Y6 direct materials purchases budget .
Product M Product A
Product MSA | 2.00 | 1.40 |
Product MA | 1.20 | 1.00 |
Beginning inventory | 15,000 | 12,000 |
Ending inventory | 16,500 | 11,750 |
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