Answer:
Direct material cost= $372,120
Explanation:
<u>To calculate the purchases of direct material for April, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Production= 44,000*3= 132,000 pounds
Desired ending inventory= (45,000*3)*0.3= 40,500 pounds
Beginning inventory= (132,000*0.3)= 39,600 pounds
Purchases= 132,000 + 40,500 - 39,600
Purchases= 132,900 pounds
Direct material cost= 132,900*2.8= $372,120
