Production estimates for July for Starling Co. are as follows: Estimated inventory (units), July 1 8,500 Desired inventory (units), July 31 10,500 Expected sales volume (units), July 76,000 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 total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory) required for July production is a.$1,125,000 for A; $675,000 for B b.$1,080,000 for A; $1,296,000 for B c.$1,170,000 for A; $702,000 for B d.$1,080,000 for A; $648,000 for B
Production estimates for July for Starling Co. are as follows: Estimated inventory (units), July 1 8,500 Desired inventory (units), July 31 10,500 Expected sales volume (units), July 76,000 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 total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory) required for July production is a.$1,125,000 for A; $675,000 for B b.$1,080,000 for A; $1,296,000 for B c.$1,170,000 for A; $702,000 for B d.$1,080,000 for A; $648,000 for B
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 5E: Prepare a cost of goods sold budget for MacLaren Manufacturing Inc. for the year ended December 31,...
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Production estimates for July for Starling Co. are as follows:
Estimated inventory (units), July 1 | 8,500 |
Desired inventory (units), July 31 | 10,500 |
Expected sales volume (units), July | 76,000 |
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 total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory) required for July production is
a.$1,125,000 for A; $675,000 for B
b.$1,080,000 for A; $1,296,000 for B
c.$1,170,000 for A; $702,000 for B
d.$1,080,000 for A; $648,000 for B
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