Stevens Company manufactures electronic components used in automobile manufacturing. Each component uses two raw materials, Geo and Clio. Standard usage of the two materials required to produce onefinished electronic component, as well as the current inventory, are shown below.Material Per UnitGeoClioStandardPrice Current Inventory5,000 pounds7,500 pounds2.0 pounds $15/lb.1.5 pounds $10/lb.Select one:Stevens forecasts sales of 20,000 components for each of the next two production periods. Company policy dictates that 25% of the raw materials needed to produce the next period's projected sales bemaintained in ending direct materials inventory.Based on this information, what would the budgeted direct materials purchases for the coming period be?a. Geo- $450,000 Clio- $450,000b. Geo- $675,000 Clio- $300,000c. Geo- $825,000 Clio- $450,000d. Geo- $675,000 Clio- $400,000

Budgeted direct materials refer to the projected quantity of raw materials required for production…

Based on this information, what would the budgeted direct materials purchases for the coming period be? Select one: a. Geo- $450,000 Clio- $450,000 b. Geo- $675,000 Clio- $300,000 c. Geo- $825,000 Clio-$450,000 d. Geo- $675,000 Clio- $400,000

Based on this information, what would the budgeted direct materials purchases for the coming period be? Select one: a. Geo- $450,000 Clio- $450,000 b. Geo- $675,000 Clio- $300,000 c. Geo- $825,000 Clio-$450,000 d. Geo- $675,000 Clio- $400,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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