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)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...
icon
Related questions
Question

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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College