Answer:
cost of direct materials purchases 160,800
Explanation:
pounds required for production 54,000
desired ending inventory 2,800
total needs 56,800
beginning inventory (3,200)
units to be purchased 53,600
cost per unit of direct materials 3
cost of direct materials purchases 160,800
<u>Notes:</u>
The pounds for production and the ending inventory are the raw materials demand.
The beginning inventory is a portion we already have, so we need to purchase less.
Then, we multiply the pounds to be purchased by their cost to get the total cost for direct materials
