Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume (units), August 75,000 For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3.0 lbs. Material B ($18 per lb.) 0.5 lb. The number of pounds of Materials A and B required for August production is a.225,000 lbs. of A; 37,500 lbs. of B b.216,000 lbs. of A; 72,000 lbs. of B c.234,000 lbs. of A; 39,000 lbs. of B d.216,000 lbs. of A; 36,000 lbs. of B
Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume (units), August 75,000 For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3.0 lbs. Material B ($18 per lb.) 0.5 lb. The number of pounds of Materials A and B required for August production is a.225,000 lbs. of A; 37,500 lbs. of B b.216,000 lbs. of A; 72,000 lbs. of B c.234,000 lbs. of A; 39,000 lbs. of B d.216,000 lbs. of A; 36,000 lbs. of B
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...
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Production estimates for August for Jay Company are as follows:
| Estimated inventory (units), August 1 | 12,000 |
| Desired inventory (units), August 31 | 9,000 |
| Expected sales volume (units), August | 75,000 |
For each unit produced, the direct materials requirements are as follows:
| Material A ($5 per lb.) | 3.0 lbs. |
| Material B ($18 per lb.) | 0.5 lb. |
The number of pounds of Materials A and B required for August production is
a.225,000 lbs. of A; 37,500 lbs. of B
b.216,000 lbs. of A; 72,000 lbs. of B
c.234,000 lbs. of A; 39,000 lbs. of B
d.216,000 lbs. of A; 36,000 lbs. of B
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Total direct materials (assuming no beginning or ending inventory of material) of materials A and B required for production is?
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