amount of direct material to be purchased (in pounds):

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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Company X expects to sell 48,000 units of finished goods over the next period. The company has 20,000
units on hand at the beginning of the period and its managers want to have 28,000 units on hand at the end
of the period. To produce one unit of finished product, two pounds of direct materials are needed. The
Company has 200,000 pounds of direct material on hand and has budgeted for an ending direct materials
inventory of 220,000 pounds. What is the amount of direct material to be purchased (in pounds)?
O a. None of the given answers
О Б. 36,000
О с. 132,000
O d. 92,000
O e. 76,000
Transcribed Image Text:Company X expects to sell 48,000 units of finished goods over the next period. The company has 20,000 units on hand at the beginning of the period and its managers want to have 28,000 units on hand at the end of the period. To produce one unit of finished product, two pounds of direct materials are needed. The Company has 200,000 pounds of direct material on hand and has budgeted for an ending direct materials inventory of 220,000 pounds. What is the amount of direct material to be purchased (in pounds)? O a. None of the given answers О Б. 36,000 О с. 132,000 O d. 92,000 O e. 76,000
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