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![CengageNOWv2] Onlir Q Managerial Chapter 23 Flas | + × v2 cengagenow.com/ilrn/takeAssignment/takeAssignmentMain do?inprogress -true Production estimates for July are as follows Estimated inventory (units), July 1 Desired inventory (units) July 31 Expected sales volume (units), uly 8,500 10,500 76,000 For each unit produced, the direct materials requirements are as follows Direct material A ($S per lb.) Direct material B ($18 per lb.) 3 lbs. 1/2 b. The toțal direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is Oa.$1,125,000 for A; $675,000 for B ○ b. $ 1,170,000 for A $702,000 for B Oc $1,080,000 for A: $648,000 for B Od. $1,080,000 for A; $1,296,000 for B](https://media.cheggcdn.com/media%2F47a%2F47a355c1-ba52-4f54-97ca-1852e1d48e70%2Fimage "Question & Answer: For each unit produced, the direct materials requirements are as follows: Direct material A ($5 per lb.) 3 lbs. Direct material B ($18 per lb.) 1/2 lb. The total..... 1")
For each unit produced, the direct materials requirements are as follows: Direct material A ($5 per lb.) 3 lbs. Direct material B ($18 per lb.) 1/2 lb. The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is a. $1,125,000 for A: $675,000 for B b. $1,170,000 for A: $702,000 for B c. $1,080,000 for A: $648,000 for B d. $1,080,000 for A: $1,296,000 for B
Expert Answer
| production Budget | ||||||||
| units | ||||||||
| Expected sales volune | 76,000 | |||||||
| Add ending inventory july 31 | 10,500 | |||||||
| less Estimated inventory july 1 | -8,500 | |||||||
| purchase required | 78,000 | |||||||
| product A | product B | |||||||
| purhased required | 78,000 | 78,000 | ||||||
| for each unit materials required | 3 | 0.5 | ||||||
| total materials required | 234000 | 39000 | ||||||
| Cost per lb | 5 | 18 | ||||||
| total cost of materials | 1170000 | 702000 | ||||||
| option b is the answer | ||||||||
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