MC.22.88.ALGO

Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 619,000 units, estimated beginning inventory is 106,000 units, and desired ending inventory is 86,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ $0.56 per pound Material B 1.00 lb. per unit @ $2.09 per pound Material C 1.20 lb. per unit @ $1.02 per pound The dollar amount of material A used in production during the year is

a.$733,176

b.$1,251,910

c.$173,320

d.$167,720

10. MC.22.98

Production estimates for August for Jay Company are as follows:

Estimated inventory (units), August 1	12,000
Desired inventory (units), August 31	9,000
Expected sales volume (units), August	75,000

For each unit produced, the direct materials requirements are as follows:

Material A ($5 per lb.)	3.0 lbs.
Material B ($18 per lb.)	0.5 lb.

The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is

a.$1,125,000 for A; $675,000 for B

b.$1,080,000 for A; $1,296,000 for B

c.$1,080,000 for A; $648,000 for B

d.$1,170,000 for A; $702,000 for B