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Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials (DM) per unit produced. Assume that we are currently at the end
Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials (DM) per unit produced. Assume that we are currently at the end of the first quarter of the year. At the beginning of this quarter, there were 50,000 lbs. of DM on hand. The company's policy is to maintain an end-of-quarter inventory of materials equal to 25% of the following quarter's material requirements for production. a. How many units of product were produced in the 1st quarter of the year? Product produced units b. Under the assumption that production will increase by 10% in Qtr. 2, what are the direct materials requirements (in pounds) for planned production in the 2nd quarter? Direct materials requirements lbs
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