vels a single product. Budgeted sales for the year are anticipated to be 699.482

Question

vels a single product. Budgeted sales for the year are anticipated to be 699.482 units, estimated beginning inventory is 100,1g2 units, and desired ending isnventory is 84.6a3 units. The quantitles of direct materials expected to be used for each unit of finished product are given below Matrial A so lh per unit So sper pound Material B1.00 Ib. per unit@$2.29 per pound Material C 1.ao lh per unit @ 81.79 per pound What is the dollar amount of direct material C used in production during the year? Select the correct anwer O $198335 $202,850 $1,469,045

Explanation / Answer

Total Production required = Sales Units + Closing Inventory - Opening Inventory

= 699,482 Units + 84,623 Units - 100,192 Units

= 683,913 units

Dollar Amount of Direct Material C used = 683,913 units * 1.20 lb per unit * $ 1.79 per pound

= $ 1,469,045.124

= $ 1,469,045

Hence the correct answer is $ 1,469,045

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