Expected cost of direct materials purchased for month

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Reference no: EM13824092

Schuh, Inc. plans to produce 6,000 units in Month 1 and 7,000 units in Month 2. Each unit requires 3 pounds of direct materials that can be purchased for $2 per pound. At the beginning of Month 1 there are 2,000 pounds of direct materials on hand. Schuh desires an ending inventory of direct materials equal to 10 percent of the next month's direct materials needs. What is the expected cost of direct materials purchased for Month 1?

Reference no: EM13824092

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