Question

A manufacturing company has budgeted production at 5,000 units for May and 4,400 units in June. Each unit requires 3 pounds of materials at a cost of $10 per pound. On May 1, there are 2,750 pounds of materials on hand. The company desires an ending inventory of 60% of the next month's materials requirements. The total cost of direct materials purchases for May will be $ .

Answer 1

Answer:

$201,700

Explanation:

The budget production for May is 5000 units.

The total materials required for May will be no. of units multiplied by materials needed for each unit

=5000 x 3

=15000 pounds of materials

Materials required for June

=60% of (4400x 3)

= 60/100 x 13200

=7920 pounds of material

Total materials needed for May

= 15,000+7,920

=22,920 pounds

Purchases required will be

=22,920 - 2,750

=20170

Purchases in dollar value =20170 x $10

=$201,700

Answer 2

Answer:

idk

Explanation: