Production estimates for August 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:

Direct material A ($5 per lb.)	3 lbs.
Direct material B ($18 per lb.)	1/2 lb.

The total direct materials purchase (assuming no beginning or ending inventory of material) of materials A and B required for August production is:

a. $1,170,000 for A; $702,000 for B

b. $1,125,000 for A; $675,000 for B

c. $1,080,000 for A; $648,000 for B

d. $1,080,000 for A; $1,296,000 for B

Answer rating: 100% (QA)

Answers c 1080000 for A 648000 for B Solution Closing inventory op... View the full answer