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ABC Company makes and sells a single product. It requires six yards of direct materials to make one unit. Budgeted production for the next three
ABC Company makes and sells a single product. It requires six yards of direct materials to make one unit. Budgeted production for the next three months is as follows: September October November Budgeted units to be produced 23,000 units 19,000 units 28,000 units The company wants to maintain monthly ending inventories of direct materials that are equal to 83% of the next month's production needs. The cost of direct materials is $2.10 per yard. Calculate the total cost of direct materials to be purchased in September
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