How do you calculate Q2 for direct materials. 02: How many units of direct mater

Question

How do you calculate Q2 for direct materials.

02: How many units of direct material (DM) should the company purchase in February if each finished good unit takes 2 units of DM to produce, it has no beginning inventory in January, and it wants to maintain an inventory of 10 DM units? a, 90 b, 106 ?. 73 d. 156 January |February March 27 Begmning inventory- Fimished +GM Production Goods Availablo - Ending Inventory F mished Goods Sold 105 27 50 x90)3x30) 90 Beginning Inventory Direet Materials +Direct material purchases 150 50 10 140 166 Direct materials available Ending Inventory Direct Material 156 Direct Materials Used

Explanation / Answer

Direct materials purchase budget production (units) 78 per unit materials required 2 total units required 156 Add:Closing inventory 10 total needs 166 less:Beginning inventory 10 material purchase required 156 answer

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