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Carlino Corporation makes and sells one product which is a bug zapper. Due to the high inspect population for the upcoming year, Carlino is budgeting
Carlino Corporation makes and sells one product which is a bug zapper. Due to the high inspect population for the upcoming year, Carlino is budgeting sales of the bug zapper of 640,000 units. They also estimate that they will have an inventory of bug zappers at the beginning of the year equal to 98,000 units. They would like to end the year with finished goods inventory also. They would like to have 80,000 bug zappers in inventory at the end of the year. To make the necessary number of bug zappers, they will need three materials: A, B and C. Each bug zapper requires the following amounts of these direct materials listed below: Material A 50 lb. per unit @ $.60 per pound Material B 1.00 lb. per unit @ $1.70 per pound Material C 1.20 lb. per unit @ $1.00 per pound The dollar amount of direct material B used in production to make bug zappers during the year is: O $746,400 O $724,800 O S622,000 O $1.057,400
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