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Calculate the total cost of direct materials budgeted

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Reference no: EM132516159

Legalos Company makes and sells a single product. It takes seven pounds of direct materials to produce one unit of this product. Budgeted production for the next three months is given below:

Budgeted                Units to be Produced
February                 18,500 units
March                      19,200 units
April                          14,300 units

The company wants to maintain monthly ending inventories of direct materials that are equal to 54% of the following month's production needs. The cost of direct materials is $1.50 per pound.

Question 1: Calculate the total cost of direct materials budgeted to be purchased in February.

Reference no: EM132516159

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