any just beg pril 1 and has budgeted sale oming quarter as follows: Apr e Units 1,700 2,000 1,850 Sin boss just started it has no he

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sharma Company just began its business
on April 1 and has budgeted sales for the
upcoming quarter as follows: April May
June Units 1,700 2,000 1,850 Since the
business just started, it has no beginning
inventories. The desired ending finished
goods inventory for each month is one-half
of next month's budgeted sales. Three
pounds of direct material are required for
each unit produced. If direct material costs
$4 per pound, what is the total cost of
direct materials to support april's
production needs?
MC
A. 23100
B. 22200
C. 7400
D. 14800
Transcribed Image Text:Sharma Company just began its business on April 1 and has budgeted sales for the upcoming quarter as follows: April May June Units 1,700 2,000 1,850 Since the business just started, it has no beginning inventories. The desired ending finished goods inventory for each month is one-half of next month's budgeted sales. Three pounds of direct material are required for each unit produced. If direct material costs $4 per pound, what is the total cost of direct materials to support april's production needs? MC A. 23100 B. 22200 C. 7400 D. 14800
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