Production estimates for July are as follows:
Estimated inventory (units), July 1 8,500...
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Business, 06.05.2020 05:57 ReeceLehua01
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.) 3 lbs.
Direct material B ($18 per lb.) 1/2 lb.
The number of pounds of materials A and B required for July production is 216,000 lbs. of:
a. A; 36,000 lbs. of B
b. 216,000 lbs. of A;
c. 72,000 lbs. of B
d. 234,000 lbs. of A;
e. 39,000 lbs. of B
f. 225,000 lbs. of A;
g. 37,500 lbs. of B
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