Production estimates for December are as follows: Estimated inventory (units), December 1 12,000 Desired inventory (units), December 31 9,000 Expected sales volume (units), December 75,000 For each unit produced, the direct materials requirements are as follows: Direct material A ($5 per lb.) 3 lbs. Direct material B ($15 per lb.) 1/2 lb. The total direct materials purchases of materials A and B required for December production is _____. a. $1,080,000 for A; $540,000 for B b. $1,125,000 for A; $562,500 for B c. $1,260,000 for A; $630,000 for B d. $1,170,000 for A; $585,000 for B
Production estimates for December are as follows: Estimated inventory (units), December 1 12,000 Desired inventory (units), December 31 9,000 Expected sales volume (units), December 75,000 For each unit produced, the direct materials requirements are as follows: Direct material A ($5 per lb.) 3 lbs. Direct material B ($15 per lb.) 1/2 lb. The total direct materials purchases of materials A and B required for December production is _____. a. $1,080,000 for A; $540,000 for B b. $1,125,000 for A; $562,500 for B c. $1,260,000 for A; $630,000 for B d. $1,170,000 for A; $585,000 for B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Production estimates for December are as follows:
| Estimated inventory (units), December 1 | 12,000 |
| Desired inventory (units), December 31 | 9,000 |
| Expected sales volume (units), December | 75,000 |
For each unit produced, the direct materials requirements are as follows:
| Direct material A ($5 per lb.) | 3 lbs. |
| Direct material B ($15 per lb.) | 1/2 lb. |
The total direct materials purchases of materials A and B required for December production is _____.
a.
$1,080,000 for A; $540,000 for B
b.
$1,125,000 for A; $562,500 for B
c.
$1,260,000 for A; $630,000 for B
d.
$1,170,000 for A; $585,000 for B
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education