Question

Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 689,000 units, estimated beginning inventory is 100,000 units, and desired ending inventory is 87,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ $0.56 per pound Material B 1.00 lb. per unit @ $2.08 per pound Material C 1.20 lb. per unit @ $0.89 per pound The dollar amount of Material B used in production during the year is Oa. $1,406,080 Ob. $2,109,120 Oc. $1,124,864 Od. $1,687,296

Answer 1

Given that sales 689,000 unity Budget desired ending inventory = 87,000 units Begining inventory How total production during the Delised closing stocks = 100,000 units. year = Budge e Sales + opening Stocks 689,000 + 87,000 100,000 - material B 6.76,000 units and given that 1.00lb per unit of will be used for unit of finished goods. No. of uuts produced & so consumption of material & - NO. materid used per unit 676,000 x 1.00 lb 676,000 lb cost of material В consumption of B x dall per unit of B 646,000 l6 * 2.06 $llo $ 1,406,080 & Ans (option ca, (a)]