Question
Use the following information to compute the material purchase forecast for 2021: Electronic Arts produces two electronic games: WarCraft Beginners (WB) and WarCraft Advanced (WA)
Use the following information to compute the material purchase forecast for 2021: Electronic Arts produces two electronic games: WarCraft Beginners (WB) and WarCraft Advanced (WA)
Estimated sales 2021: WB 60,000 WA 40,000
Predicted inventories:
1-1-2021 WB 10,000 WA 4,000 X 16,000 Y 14,500 Z 3,500
12-31-2021 WB 12,500 WA 4,500 X 18,000 Y 16,000 Z 3,000
Direct Materials Required: Requirements per unit of
-----------------------------------------WB --------------------WA
X ($ 24 / per unit of X)------ 2 / units X ----------2.5 / units X
Y ($ 10 / per Y unit)--------- 4 / Y units--------- 6 / Y units
Z ($ 6 / per Z unit) -----------0 / Z unit----------- 1 / Z unit
How much is the total number of X units predicted to buy?
a. 226,250
b. 125,000
c. 228,250
d. 101,250
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