Solution-Calculate the total cost of direct materials to be

Calculate the total cost of direct materials to be purchased

Reference no: EM132525578

Question - ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below:

	Budgeted Units to be Produced
July	28,000 units
August	24,000 units
September	16,000 units
October	43,000 units

The company wants to maintain monthly ending inventories of direct materials equal to 36% of the next month's production needs. The cost of direct materials is $4 per pound.

Required - Calculate the total cost of direct materials to be purchased in July.

Reference no: EM132525578

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Calculate the total cost of direct materials to be purchased

Reference no: EM132525578

Reference no: EM132525578

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