Question 24

Sharma Company just began its business on April 1 and has budgeted sales for the upcoming quarter as follows: Since the business just started, it has no beginning inventories. The desired ending finished goods inventory for each month is one-half of next month's budgeted sales. Three pounds of direct material are required for each unit produce If direct material costs $6 per pound, what is the total cost of direct materials to support April's production needs? Multiple Choice $33,750. $10,800. $21,600. $32,400