Brilliant Professor Mullen determines that 27,000 pounds (DM- RP) of direct materials are needed for production in July. There are 1,600 pounds of direct materials (BI) on hand at July 1 and the desired Ending Inventory (EI) is 1,400 pounds. If the cost per pound (lb) of direct materials is $3, what is the budgeted total cost of direct materials purchases (DM-Purchases SS)? A. $79,200 B. $80,400 C. $81,600 D. $82,800

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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Brilliant Professor Mullen determines that 27,000 pounds (DM-
RP) of direct materials are needed for production in July. There
are 1,600 pounds of direct materials (BI) on hand at July 1 and
the desired Ending Inventory (EI) is 1,400 pounds. If the cost
per pound (lb) of direct materials is $3, what is the budgeted
total cost of direct materials purchases (DM-Purchases SS)?
A. $79,200
B. $80,400
C. $81,600
D. $82,800
Transcribed Image Text:Brilliant Professor Mullen determines that 27,000 pounds (DM- RP) of direct materials are needed for production in July. There are 1,600 pounds of direct materials (BI) on hand at July 1 and the desired Ending Inventory (EI) is 1,400 pounds. If the cost per pound (lb) of direct materials is $3, what is the budgeted total cost of direct materials purchases (DM-Purchases SS)? A. $79,200 B. $80,400 C. $81,600 D. $82,800
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