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Use this information for August production to answer the question that follows. Production estimates for August are as follows: Estimated inventory (units), August 1 12,000
Use this information for August production to answer the question that follows.
Production estimates for August 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 lb. |
Material B ($18 per lb.) | lb. |
The number of pounds of Material A and Material B required for August production is
a.225,000 lb. of A; 37,500 lb. of B
b.216,000 lb. of A; 72,000 lb. of B
c.216,000 lb. of A; 36,000 lb. of B
d.234,000 lb. of A; 39,000 lb. of B
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