Question

Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume (units), August 75,000 For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3.0 lbs. Material B ($18 per lb.) 0.5 lb. The number of pounds of Materials A and B required for August production is

Answer 1

Answer:

Total purchases $1,728,000

Explanation:

Production will be 75 -(12-9)= 72,000

A 72,000*3= 216,000 lbs

216,000* 5 = 1,080,000

18*1/2* 72,000= 648,000

Total purchases $1,728,000