Schuh, Inc., plans to produce 6,000 units in Month 1 and 7,000 units in Month 2. Each

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Schuh, Inc., plans to produce 6,000 units in Month 1 and 7,000 units in Month 2. Each unit requires 3 pounds of direct materials that can be purchased for $2 per pound. At the beginning of Month 1 there are 2,000 pounds of direct materials on hand. Schuh desires an ending inventory of direct materials equal to 10% of the next month’s direct materials needs. What is the expected cost of direct materials purchases for Month 1?

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