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Flagstaff Company has budgeted production units of 8,900 for July and 9,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The
Flagstaff Company has budgeted production units of 8,900 for July and 9,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 25% of the units budgeted in the following month. There was 4,450 ounces of direct material in inventory at the start of July. The total amount of direct materials in ounces, to be purchased in July is:
17,800 18,200 22,350 17,900 17,700
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