Wilmer Company produces two products: OldX and NewX. Budgeted sales for four monthsare as follows:OldXNewXMay10,00020,00015,00040,000June70,000JulyAugust80,00030,00090,000Wilmer's ending inventory policy is that OldX should have 10% of next month's sales inending inventory and Newx should have 20% of next month's sales in ending inventory. OnMay 1, there were 1,000 units of OldX and 9,000 units of NewX.NewX requires 4 units of component A. (OldX does not use component A.) There were2,100 units of component A in inventory on May 1. Wilmer wants to have 30 percent of thefollowing month's production needs in inventory for Component A.What is the desired ending inventory of component A for May?

Calculation of desired ending inventory of component A for the month of May:::: Desired inventory…

Wilmer Company produces two products: OldX and NewX. Budgeted sales for four mon are as follows: OldX NewX 10,000 20,000 15,000 May 40,000 June 70,000 July August 80,000 30,000 90,000 Wilmer's ending inventory policy is that OldX should have 10% of next month's sales in ending inventory and Newx should have 20% of next month's sales in ending inventory. May 1, there were 1,000 units of OldX and 9,000 units of NewX. NewX requires 4 units of component A. (OldX does not use component A.) There were 2,100 units of component A in inventory on May 1. Wilmer wants to have 30 percent of t following month's production needs in inventory for Component A. What is the desired ending inventory of component A for May?

Wilmer Company produces two products: OldX and NewX. Budgeted sales for four mon are as follows: OldX NewX 10,000 20,000 15,000 May 40,000 June 70,000 July August 80,000 30,000 90,000 Wilmer's ending inventory policy is that OldX should have 10% of next month's sales in ending inventory and Newx should have 20% of next month's sales in ending inventory. May 1, there were 1,000 units of OldX and 9,000 units of NewX. NewX requires 4 units of component A. (OldX does not use component A.) There were 2,100 units of component A in inventory on May 1. Wilmer wants to have 30 percent of t following month's production needs in inventory for Component A. What is the desired ending inventory of component A for May?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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