QUESTION 5

Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz) The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units budgeted in the following month. There was 3160 ounces of direct material in inventory at the start of July The total amount of direct materials in ounces, to be purchased in July is: Multiple Choice 16,200 oz. 19,040 oz 15,720 oz 15,800 oz. 15,880 oz