Haverton Inc. sells a single product. Budgeted annual sales are anticipated to be 320,000 units; the estimated beginning inventory is 25,000 units, and the desired ending inventory is 40,000 units. Each unit of finished product requires 5 pounds of direct materials at $6 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. $9,600,000 B. $10,050,000 C. $11,400,000 D. $12,000,000

Haverton Inc. sells a single product. Budgeted annual sales are anticipated to be 320,000 units; the estimated beginning inventory is 25,000 units, and the desired ending inventory is 40,000 units. Each unit of finished product requires 5 pounds of direct materials at $6 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. $9,600,000 B. $10,050,000 C. $11,400,000 D. $12,000,000

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 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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