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Production estimates for August are as follows: Estimated inventory (units), August 112,000Desired inventory (units), August 319,000Expected sales volume (units), August75,000 For each unit produced, the
Production estimates for August are as follows:
Estimated inventory (units), August 112,000Desired inventory (units), August 319,000Expected sales volume (units), August75,000For each unit produced, the direct materials requirements are as follows:
Direct material A ($5 per lb.)3 lbs.Direct material B ($15 per lb.)1/2 lb.The total direct materials purchases of materials A and B required for August production is _____.
a. $1,080,000 for A; $540,000 for B
b. $1,170,000 for A; $585,000 for B
c. $1,125,000 for A; $562,500 for B
d. $1,260,000 for A; $630,000 for B
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