The following data on production, materials required for products X and Y, and inventory pertain to the budget of LMN Company:
|
Product X |
Product Y |
|
|
Production (units) |
2,000 |
3,000 |
|
Materials (units) |
||
|
A |
3.0 |
3,000 |
|
B |
4.0 |
6.5 |
|
Beginning |
Desired Ending |
Price/Unit |
|
|
Materials inventory: |
|||
|
A |
2,000 |
3,000 |
$2 |
|
B |
6,000 |
6,000 |
1.20 |
(a) Determine the number of material units needed to produce products X and Y.
(b) Calculate the cost of materials used for production.
(c) Determine the number of material units to be purchased.
(d) Calculate the cost of materials to be purchased.