The following data on production, materials required for products A and B, and inventory pertains to the budget of Spider Industry:
Product A Product B
Production (units) 2,000 units 3,000 units
Materials (units) 100,000 50,000
X 3.0 1.0
Y 4.0 6.5
Beginning Desired Ending Price/Unit
Materials inventory:
X 2,000 3,000 $20
Y 6,000 6,000 $12
1) Determine the number of material units needed to product products A and B.
2) Calculate the cost of materials used for production.
3) Determine the number of materials units to be purchased.
4) Calculate the cost of materials to be purchased.