No. 2 IZZY Manufacturing Company has one product line - Product WZ. Last year, the company has sold 40,000 units at P40 per unit. Next year, the business expects to increase its sales volume by 10%. There are no beginning and ending finished goods inventories. In the manufacture of one unit of Product WZ, the company uses three types of direct raw materials as follows. Raw materials AA - 2 units at P4.00 per unit Raw Materials BB - 2 units at P5 per unit Raw Materials CC - 3 units at P7 per unit There are no beginning and ending raw materials inventories Required: Determine the raw materials requirements to produced the total uníts planned to sold the following year
No. 2 IZZY Manufacturing Company has one product line - Product WZ. Last year, the company has sold 40,000 units at P40 per unit. Next year, the business expects to increase its sales volume by 10%. There are no beginning and ending finished goods inventories. In the manufacture of one unit of Product WZ, the company uses three types of direct raw materials as follows. Raw materials AA - 2 units at P4.00 per unit Raw Materials BB - 2 units at P5 per unit Raw Materials CC - 3 units at P7 per unit There are no beginning and ending raw materials inventories Required: Determine the raw materials requirements to produced the total uníts planned to sold the following year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:No. 2 IZZY Manufacturing Company has one product line - Product WZ. Last year, the company has sold 40,000
units at P40 per unit. Next year, the business expects to increase its sales volume by 10%. There are no beginning
and ending finished goods inventories.
In the manufacture of one unit of Product WZ, the company uses three types of direct raw materials as follows:
Raw materials AA - 2 units at P4.00 per unit
Raw Materials BB - 2 units at P5 per unit
Raw Materials CC - 3 units at P7 per unit
There are no beginning and ending raw materials inventories
Required: Determine the raw materials requirements to produced the total units planned to sold the following
year
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