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LLJ Corporation produces a single product that requires six yards of direct materials to produce each unit. LLJ has budgeted the number of units of
LLJ Corporation produces a single product that requires six yards of direct materials to produce each unit. LLJ has budgeted the number of units of this product to be produced over the next four months as follows: budgeted units to be produced September 30,600 October 71,900 November 52,300 December 49,800 LLJ wants to maintain monthly ending inventories of direct materials equal to 40% of the next month's production needs. The cost of direct materials is $2.20 per yard. Calculate the cost of direct materials budgeted to be purchased in November.
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