Calculate raw materials to purchased for each of products

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Reference no: EM132527477

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

Finished 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

Question 1: Calculate the raw materials to be purchased for each of the products.

Reference no: EM132527477

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