A company manufactures two products: P and Q. The company predicts a sales volume of 25,000...

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A company manufactures two products: P and Q. The company predicts a sales volume of 25,000 units for product P and ending finished-goods inventory of 5,000 units. These numbers for product Q are 32,000 and 7,000, respectively. The company currently has 6,000 units of P and 5,000 units of Q in inventory. The following raw materials are required to manufacture these products: Raw Material Cost per Pound X Y Z $1.25 $2.50 $2.00 Required for Product P 3 pounds 2 pounds Required for Product Q 1 pound 2 pounds Prepare a materials usage budget for materials X, Y, and Z showing the quantities and dollar amounts to be used. A company manufactures two products: P and Q. The company predicts a sales volume of 25,000 units for product P and ending finished-goods inventory of 5,000 units. These numbers for product Q are 32,000 and 7,000, respectively. The company currently has 6,000 units of P and 5,000 units of Q in inventory. The following raw materials are required to manufacture these products: Raw Material Cost per Pound X Y Z $1.25 $2.50 $2.00 Required for Product P 3 pounds 2 pounds Required for Product Q 1 pound 2 pounds Prepare a materials usage budget for materials X, Y, and Z showing the quantities and dollar amounts to be used.

Answer rating: 100% (QA)

Calculation of the production requirements for products P and Q Product P Predicted Sales 25000 units Ending Inventory 5000 units Starting Inventory 6... View the full answer