7. Production estimates for August for Jay Company are as follows:

Estimated inventory (units), August 1	12,000
Desired inventory (units), August 31	9,000
Expected sales volume (units), August	75,000

For each unit produced, the direct materials requirements are as follows:

Material A ($5 per lb.)	3.0 lbs.
Material B ($18 per lb.)	0.5 lb.

The number of pounds of Materials A and B required for August production is

a.216,000 lbs. of A; 72,000 lbs. of B

b.225,000 lbs. of A; 37,500 lbs. of B

c.234,000 lbs. of A; 39,000 lbs. of B

d.216,000 lbs. of A; 36,000 lbs. of B

8. Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 109,000 units, and desired ending inventory is 85,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ $0.59 per pound Material B 1.00 lb. per unit @ $1.73 per pound Material C 1.20 lb. per unit @ $1.03 per pound The dollar amount of material A used in production during the year is

a.$181,720

b.$761,376

c.$188,800

d.$1,065,680