The MPS Calls for 210 Units of Product M

question 153

Essay

The MPS calls for 210 units of Product M. There are currently 60 of Product M on hand. Each M requires 2 of Component N. There are 10 units of N on hand.
a. Calculate the net requirements for M.
b. Calculate the gross requirements for N.

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Definitions:

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the ledger.

Chart of Accounts

A systematic list of all account titles and numbers used by a company to organize its financial transactions and prepare financial statements.

Debits

Accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts; they are recorded on the left side of accounting ledgers.

Credits

Accounting entries that increase liabilities or equity or that decrease assets.