The following facts are known: · The total pounds needed for production are 2 times the units to be produced. · The desired ending direct materials inventory is 20% of the total pounds needed for production. · The beginning direct materials inventory is equal in number to 10% of the units to be produced. · Cost per pound is $10. · Total cost of the direct materials purchases is $1,610,000. Question: 1. How many units of direct materials should be purchased for the period? 2. How many units are to be produced for the period?

The following facts are known: · The total pounds needed for production are 2 times the units to be produced. · The desired ending direct materials inventory is 20% of the total pounds needed for production. · The beginning direct materials inventory is equal in number to 10% of the units to be produced. · Cost per pound is $10. · Total cost of the direct materials purchases is $1,610,000. Question: 1. How many units of direct materials should be purchased for the period? 2. How many units are to be produced for the period?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 3CMA: A firm has 100,000 in direct materials costs, 50,000 in direct labor costs, and 80,000 in overhead....

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am. 263.
Subject :- Accounting