Question

Production estimates for July are as follows:

Answer 1

Answer:

d. 234,000 lbs. of A; e. 39,000 lbs. of B

Explanation:

For computing the number of pounds first we have to find out the production units which is shown below:

Production units = Sales units + ending inventory units - beginning inventory units

= 76,000 units + 10,500 units - 8,500 units

= 78,000 units

Now number of material pounds required is

Direct material            A          B  

One unit requires           3 lbs 1 ÷ 2 lbs

Multiply 78000 unit requires   234,000 39,000

We simply multiplied the production units with the required unit of each material i.e A and B so that the accurate number of pounds could arrive