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    3. Production estimates for July are as follows.
    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

    Answer this
    0  Views: 2669 Answers: 2 Posted: 13 years ago
    Tags: managerialaccounting
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      2 Answers

      Thanks!

      9 years ago. Rating: 5
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        Thanks!

        9 years ago. Rating: 4
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