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Orr Company makes and sells a single product. The budgeted units to be produced over the next four months appears below: Budgeted Units to be
Orr Company makes and sells a single product. The budgeted units to be produced over the next four months appears below: Budgeted Units to be Produced February 14,690 units March 18,230 units April 16,780 units May 19,450 units Each unit produced requires four pounds of direct materials. The company wants to have direct materials inventory on hand at the end of each month equal to 125% of the next month's production needs. The cost of direct materials is $1.70 per pound. Calculate the total cost of direct materials budgeted to be purchased in February.
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