Whistle Works manufacturers safety whistle keychains. They have the following in
ID: 2599195 • Letter: W
Question
Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget (ciotxr November December Units to be produced 4,800 5,550 5,920 Whistle Works sells each whistle for S6. It takes 5 ounces of metal to produce each whistle at a cost of S0.60 per ounce They prefer to have 10% of materials required for the following month's production in ending inventory as well. What is the total cost of direct materials for October to meet production needs? (Round the final answer to the nearest dollar.) O A. $14,175 O B. $3,777 O C. $14,625 OD, $2.880Explanation / Answer
Calculation of cost of direct material for october:
Cost of material for current month production (4,800 x 5 x $0.60) $14,400
Add: Ending inventory (5,550 x 10% x 5 x $0.60) $1,665
Less: Beginning inventory (4,800 x 10% x 5 x $0.60) $1,440
Total $14,625
Option C. $14,625 is correct answer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.