Production estimates for july are as follows: estimated inventory (units), July

Question

Production estimates for july are as follows:

estimated inventory (units), July 1        8,500

desired inventory (units), July 31          10,500

Expected sales volume (units), July      76,000

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

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

Direct material B ( $18 per lb.)             1/2 lb.

The number of pounds of materials A and B required for july production is:

a. 216,000 lbs. of A; 36,000 lbs. of B

b. 216,000 lbs. of A; 72,000 lbs of B

c. 234,000 lbs. of A; 39,000 lbs of B

d. 225,000 lbs of A; 37,500 lbs. of B

Explanation / Answer

So, answer is (c). 234000lbs of A and 39000lbs of B

Production Estimate Units Sales 76000 (+) Desired ending inventory 10500 (-) Beginning inventory 8500 Production to be done 78000 Materials required Direct material A B One unit requires 3lbs 1/2 lbs 78000 unit requires 234000 39000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.