Test III. Cost to purchased raw materials JENNY Processing Company expects in 2019 to increase by 10% the products sold the previous year totaling 40,000 units. At the start of 2019, the company has finished goods of 6,000 units and plans to maintain an inventory of 8,000 at the end of 2019. To produce one finished product, the company required 3 units of raw materials OP and 4 units of materials QR, One unit of raw materials OP and one unit of raw materials QR cost P4 and P7, respectively. The inventory level of the raw materials is as follows: January 1 (actual) December 31 (target) Material OP 4,000 5,000 Material QR 3,000 4,000 Required: Determine the estimated cost to purchased the total raw materials requirement.
Test III. Cost to purchased raw materials JENNY Processing Company expects in 2019 to increase by 10% the products sold the previous year totaling 40,000 units. At the start of 2019, the company has finished goods of 6,000 units and plans to maintain an inventory of 8,000 at the end of 2019. To produce one finished product, the company required 3 units of raw materials OP and 4 units of materials QR, One unit of raw materials OP and one unit of raw materials QR cost P4 and P7, respectively. The inventory level of the raw materials is as follows: January 1 (actual) December 31 (target) Material OP 4,000 5,000 Material QR 3,000 4,000 Required: Determine the estimated cost to purchased the total raw materials requirement.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Test IlI. Cost to purchased raw materials
JENNY Processing Company expects in 2019 to increase by 10% the products sold the previous year
totaling 40,000 units. At the start of 2019, the company has finished goods of 6,000 units and plans to
maintain an inventory of 8,000 at the end of 2019.
To produce one finished product, the company required 3 units of raw materials OP and 4 units of
materials QR. One unit of raw materials OP and one unit of raw materials QR cost P4 and P7,
respectively.
The inventory level of the raw materials is as follows:
January 1 (actual)
December 31 (target)
Material OP
4,000
5,000
Material QR
3,000
4,000
Required: Determine the estimated cost to purchased the total raw materials requirement.
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