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The Detroit Company which makes wooden chicken coops, is creating their Direct Materials Budget for the upcoming year. Detroit estimated the following: Units of Production

The Detroit Company which makes wooden chicken coops, is creating their Direct Materials Budget for the upcoming year. Detroit estimated the following: Units of Production Needed for next year is 2,000 units; the Desired Ending Direct Material Inventory is 10,000 board feet of wood, the Estimated Beginning Direct Material Inventory is 15,000 board feet of wood, the total board feet of wood it takes to build a dog house is 100 board feet, and the cost of wood per board foot is $0.30. What is the Total Cost of Raw Material to be Purchased for the year? 58,500 65,850 75,000 25,700

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