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Orr Company makes and sells a single product called a Bik. It takes four yards of Material A to make one Bik. Budgeted production of
Orr Company makes and sells a single product called a Bik. It takes four yards of Material A to make one Bik. Budgeted production of Biks for the next three months is as follows: Budgeted Biks to be Produced February 15,000 units March 17,000 units April 21,000 units The company wants to maintain monthly ending inventories of Material A equal to 53% of the next month's production needs. Material A costs $1.20 per yard. The company is in the process of preparing a direct materials purchases budget. Calculate the total cost of material A budgeted to be purchased in March.
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