Question Content Area

Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 615,000 units, estimated beginning inventory is 104,000 units, and desired ending inventory is 84,000 units. The quantities of direct materials expected to be used for each unit of finished product areas follows: Material A: 0.50 lb. per unit @ $0.59 per pound Material B: 1.00 lb. per unit @ $2.06 per pound Material C: 1.20 lb. per unit @ $0.97 per pound The dollar amount of Material A to be used in production during the year is

a. $1,225,700

b. $692,580

c. $175,525

d. $181,425