Hardin Corp. sells a single product. Budgeted annual sales are anticipated to be 320,000 units: the estimated beginning inventory is 24,000 units, and the desired ending inventory is 27,000. Each unit of finished product requires 3 pounds of direct materials at $4.50 per pound. There will be no changes in the direct materials inventory this year. What is the budgeted cost of direct materials to be used this year? A. 4,150,000 B. 4,320,000 C. 4,340,250 D. 4,360,500

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
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What is the budgeted cost of direct materials to be used this year on these general accounting question?

Hardin Corp. sells a single product. Budgeted annual sales are
anticipated to be 320,000 units: the estimated beginning
inventory is 24,000 units, and the desired ending inventory is
27,000. Each unit of finished product requires 3 pounds of
direct materials at $4.50 per pound. There will be no changes
in the direct materials inventory this year. What is the
budgeted cost of direct materials to be used this year?
A. 4,150,000
B. 4,320,000
C. 4,340,250
D. 4,360,500
Transcribed Image Text:Hardin Corp. sells a single product. Budgeted annual sales are anticipated to be 320,000 units: the estimated beginning inventory is 24,000 units, and the desired ending inventory is 27,000. Each unit of finished product requires 3 pounds of direct materials at $4.50 per pound. There will be no changes in the direct materials inventory this year. What is the budgeted cost of direct materials to be used this year? A. 4,150,000 B. 4,320,000 C. 4,340,250 D. 4,360,500
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