Question: CHOP Inc., which makes only one product, Yester, has the following information available for the coming year. CHOP expects sales to be 27,000 units at
CHOP Inc., which makes only one product, Yester, has the following information available for the coming year. CHOP expects sales to be 27,000 units at $32 per unit. The current inventory of Yester is 3,500 units. CHOP wants an ending inventory of 4,200 units. Each unit of Yester takes two units of component K. Component K is estimated to cost $9 per unit. Current inventory of K is 3,900 units. CHOP wants 5,800 units of K on hand at the end of the near. How much will the direct materials budget show as the cost of materials to be purchased? $473,400 $515.700 $477,900 $257,400
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