Linnie4352
Production estimates for July are as follows.
Estimated inventory (units), July 1 8,500
Desired inventory (units), July 31 10,500
Expected sales volume (units), July 76,000
For each unit produced, the direct materials requirements are as follows:
Direct material A ($5 per pound) 3 pounds
Direct material B ($18 per pound) 1/2 pound
The total direct materials purchases of material A and B (assuming no begining or ending inventory) required for July production is:
A: $1,080,000 for A; $648,000 for B
B. $1,080,000 for A; $1,296,000 for B
C. $1,170,000 for A; $702,000 for B
D. $1,125,000 for A; $675,000 for B
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country bumpkin
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