The XYZ Company had the following costs: Direct Materials Direct Materials Month Other information: The company...

Transcribed Image Text:

The XYZ Company had the following costs: Direct Materials Direct Materials Month Other information: The company had the following budgeted sales for December, January, and February: December January February Sales (in units) 50,000 Selling Price per unit $0.50 per kg $42/unit 5kg per unit 60,000 40,000 $45/unit $30/unit The company has a policy of always maintaining the following inventory levels: Finished Goods Inventory = 10% of next month's sales. Direct Materials Inventory = 30% of next month's production requirements. Calculate the Production plan in total units for January Round your interim calculations to at least 4 decimals and final answer to 2 decimal places. The XYZ Company had the following costs: Direct Materials Direct Materials Month Other information: The company had the following budgeted sales for December, January, and February: December January February Sales (in units) 50,000 Selling Price per unit $0.50 per kg $42/unit 5kg per unit 60,000 40,000 $45/unit $30/unit The company has a policy of always maintaining the following inventory levels: Finished Goods Inventory = 10% of next month's sales. Direct Materials Inventory = 30% of next month's production requirements. Calculate the Production plan in total units for January Round your interim calculations to at least 4 decimals and final answer to 2 decimal places.

Answer rating: 100% (QA)

To calculate the production plan for January we need to determine the production requirements based ... View the full answer