Question
Patrick Star Tech Inc. manufactures high quality and high capacity USB flash drives. They have the following information available to prepare their master budget: Month
Patrick Star Tech Inc. manufactures high quality and high capacity USB flash drives. They have the following information available to prepare their master budget:
Month | Units to be produced |
October | 4,490 |
November | 4,760 |
December | 5,180 |
Patrick Star Tech Inc. sells each flash drive for $12. It takes 3 ounces of metal to produce each flash drive at a cost of $0.50 per ounce. They prefer to have 10% of direct materials required for the following month's production in ending inventory as well. What is the total cost of direct materials for October to meet production needs?
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