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24 October, 22:00

Direct co. determines that 48,000 pounds of direct materials are needed for production in may. there are 3,000 pounds of direct materials on hand at july 1 and the desired ending inventory is 1,800 pounds. if the cost per unit of direct materials is $2, what is the budgeted total cost of direct materials purchases? 98,400

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  1. 24 October, 22:29
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    Budgeted total cost of direct material purchases

    Production usage (In pound) 48,000

    Desired Closing Inventory 1,800

    49,800

    Opening Inventory (3,000)

    Material Purchases (In pound) 46,800

    Material Purchase cost ($) 93,600
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