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What the total direct materials purchases of materials

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Reference no: EM132743823

Production estimates for August are as follows:

Estimated inventory (units), August 112,000

Desired inventory (units), August 319,000

Expected sales volume (units), August75,000

For each unit produced, the direct materials requirements are as follows:

Direct material A ($5 per lb.)3 lbs

Direct material B ($15 per lb.)1/2 lb.

Problem 1: The total direct materials purchases of materials A and B required for August production is:

a. $1,170,000 for A; $585,000 for B.

b. $1,080,000 for A; $540,000 for B.

c. $1,125,000 for A; $562,500 for B.

d. $1,260,000 for A; $630,000 for B.

Reference no: EM132743823

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