Compute the dollar amount of Direct Material "A" to be used in production during the year, given the following info: Budgeted Sales for the year = 640,000 units Estimated Beg. Inventory = 108,000 units Desired End. Inventory = 90,000 units The Quantities of Direct Materials expected to be used for each Unit of finished product are as follows: Material A = 0.5 lb. per unit @ $0.60 per lb. Material B 1.0 lb. per unit @ $1.70 per lb. Material C = 1.2 lb. per unit @ $1.00 per lb. O $186,600.00 O $210,600.00 O $181,200.00 $240.000.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Compute the dollar amount of Direct Material "A" to be used in production during the year,
given the following info:
Budgeted Sales for the year = 640,000 units
Estimated Beg. Inventory = 108,000 units
Desired End. Inventory = 90,000 units
The Quantities of Direct Materials expected to be used for each Unit of finished product
are as follows:
Material A = 0.5 lb. per unit @ $0.60 per lb.
Material B 1.0 lb. per unit @ $1.70 per lb.
Material C= 1.2 lb. per unit @ $1.00 per lb.
O $186,600.00
$210,600.00
O$181,200.00
$240,000.00
Transcribed Image Text:Compute the dollar amount of Direct Material "A" to be used in production during the year, given the following info: Budgeted Sales for the year = 640,000 units Estimated Beg. Inventory = 108,000 units Desired End. Inventory = 90,000 units The Quantities of Direct Materials expected to be used for each Unit of finished product are as follows: Material A = 0.5 lb. per unit @ $0.60 per lb. Material B 1.0 lb. per unit @ $1.70 per lb. Material C= 1.2 lb. per unit @ $1.00 per lb. O $186,600.00 $210,600.00 O$181,200.00 $240,000.00
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