What are budgeted total cost of direct materials purchases

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Question 1: To produce one unit, M Company requires 13kg direct materials. The company projects to produce 3527 units in quarter 1, 3508 units in quarter 2, and 4360 in quarter 3. To ensure a smooth production process the company has always 8% of next quarter's production requirements as ending inventory. What are the budgeted total cost of direct materials purchases in quarter 2 if the expected purchasing price is $20 per kg?

a. $912080
b. $1002768
c. $929802
d. None of the available answer choices
e. $1076130

Reference no: EM132878620

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