Flagstaff Company has budgeted production units of 8,300 for July and 8,500 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,320 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.15 per ounce, is:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Flagstaff Company has budgeted production units of 8,300 for July and 8,500 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,320 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.15 per ounce, is:

Flagstaff Company has budgeted production units of 8,300 for July and 8,500 for August. The direct materials requirement per unit is 2 ounces (oz.). The company
has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the
following month. There was 3,320 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials
budget, assuming the materials cost $1.15 per ounce, is:
Transcribed Image Text:Flagstaff Company has budgeted production units of 8,300 for July and 8,500 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,320 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.15 per ounce, is:
Multiple Choice
$19,182.
$23,000.
$15,272.
$18,998.
$19,090.
Transcribed Image Text:Multiple Choice $19,182. $23,000. $15,272. $18,998. $19,090.
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