Problem 5 IZZY Manufacturing Company has one product line - Product WZ. This year, the company 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, HYZEL uses three types of direct raw material as follows: Raw material AA Raw material BB Raw material CC ORKING 2 units at P4.00 per unit 2 units at P5.00 per unit 3 units at P7.00 per unit There are no beginning and ending raw materials inventories. Required: Determine the raw materials requirements to produce the total units planned to be sold the following year.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 39E: (Appendix 11A) Manufacturing Cycle Efficiency Kurena Company provided the following information on...
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Problem 5
15gbird
IZZY Manufacturing Company has one product line - Product WZ. This year, the company
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, HYZEL uses three types of direct raw
material as follows:
8.1 WORKI
Raw material AA
Raw material BB
Raw material CC
2 units at P4.00 per unit
2 units at P5.00 per unit
3 units at P7.00 per unit
There are no beginning and ending raw materials inventories.blity to
foencial
Required: Determine the raw materials requirements to produce the total units planned
to be sold the following year.
discuss
purposes
concepa
Transcribed Image Text:Problem 5 15gbird IZZY Manufacturing Company has one product line - Product WZ. This year, the company 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, HYZEL uses three types of direct raw material as follows: 8.1 WORKI Raw material AA Raw material BB Raw material CC 2 units at P4.00 per unit 2 units at P5.00 per unit 3 units at P7.00 per unit There are no beginning and ending raw materials inventories.blity to foencial Required: Determine the raw materials requirements to produce the total units planned to be sold the following year. discuss purposes concepa
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