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Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget: ? Units to be produced October 4,500 November
Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:
? | Units to be produced |
October | 4,500 |
November | 4,750 |
December | 5,200 |
Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. What is the total cost of direct materials for October to meet production needs?
A) | $6,787.50 | |
B) | $2,263 | |
C) | $6,712.50 | |
D) | $2,250 |
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