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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
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 number of pounds of Materials A and B required for August production is
a.225,000 lbs. of A; 37,500 lbs. of B
b.216,000 lbs. of A; 72,000 lbs. of B
c.234,000 lbs. of A; 39,000 lbs. of B
d.216,000 lbs. of A; 36,000 lbs. of B
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