Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 644,000 units, estimated beginning inventory is 102,000 units, and desired ending inventory is 85,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A 0.50 lb. per unit @ $0.64 per poundMaterial B 1.00 lb. per unit @ $2.38 per poundMaterial C 1.20 lb. per unit @ $0.97 per poundThe dollar amount of Material C used in production during the year is

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Asked Dec 19, 2019
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Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 644,000 units, estimated beginning inventory is 102,000 units, and desired ending inventory is 85,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.

Material A 0.50 lb. per unit @ $0.64 per pound
Material B 1.00 lb. per unit @ $2.38 per pound
Material C 1.20 lb. per unit @ $0.97 per pound

The dollar amount of Material C used in production during the year is

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Calculate the raw materials required in units: Units Particulars Budgeted sales 644,000 85,000 Add: Closing stock of finished goods Less: Opening stock of finished goods 102,000 Units manufactured 627,000 Requirement of Material C per unit 1.20 lb Raw materials required in Ibs (627,000 units x1.201bs) 752,400

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Determine the dollar amount of Material C used in production during the year. Particulars Units S729,828 Cost of raw material (752,400 lbs x0.97 per lb)

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