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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
B
4.0
6.5
Beginning
Desired Ending
Price/Unit
Materials inventory:
$2
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.
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