Estimated inventory (units), July 1 Desired inventory (units), July 31 Expected sales volume (units), July For each unit produced, the direct materials requirements are as follows: 3.0 lbs. 8,500 10,500 76,000 Material A ($5 per lb.) Material B ($18 per lb.) The total direct materials purchases of Materials A and B (assuming no beginning or end a. $1,170,000 for A: $702,000 for B 0.5 lb.
Estimated inventory (units), July 1 Desired inventory (units), July 31 Expected sales volume (units), July For each unit produced, the direct materials requirements are as follows: 3.0 lbs. 8,500 10,500 76,000 Material A ($5 per lb.) Material B ($18 per lb.) The total direct materials purchases of Materials A and B (assuming no beginning or end a. $1,170,000 for A: $702,000 for B 0.5 lb.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 3CMA
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![Production estimates for July for Starling Co. are as follows:
Estimated inventory (units), July 1
Desired inventory (units), July 31
Expected sales volume (units), July
For each unit produced, the direct materials requirements are as follows:
3.0 lbs.
0.5 lb.
The total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory) required for July production is
Oa. $1,170,000 for A: $702,000 for B
Ob. $1,080,000 for A: $1,296,000 for B
Oc. $1,125,000 for A: $675,000 for B
Od. $1,080,000 for A: $648,000 for B
Material A ($5 per lb.)
Material B ($18 per lb.)
8,500
10,500
76,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa28b18f-3e2d-4592-9d09-7b963ee49630%2F9b9c8e45-f1db-4229-9422-ebd13ccf5ad7%2F9r7n3q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Production estimates for July for Starling Co. are as follows:
Estimated inventory (units), July 1
Desired inventory (units), July 31
Expected sales volume (units), July
For each unit produced, the direct materials requirements are as follows:
3.0 lbs.
0.5 lb.
The total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory) required for July production is
Oa. $1,170,000 for A: $702,000 for B
Ob. $1,080,000 for A: $1,296,000 for B
Oc. $1,125,000 for A: $675,000 for B
Od. $1,080,000 for A: $648,000 for B
Material A ($5 per lb.)
Material B ($18 per lb.)
8,500
10,500
76,000
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