Question: Help with this problem would be appreciated! Thanks in advance!! Orr Company makes and sells a single product. The company is inthe process of preparing

Help with this problem would be appreciated! Thanks in advance!!

Help with this problem would be appreciated! Thanks in advance!! Orr Company

Orr Company makes and sells a single product. The company is inthe process of preparing a direct materials purchases budget andhas provided the Following information: 1. It takes three yards of direct materials to produce one unit ofthis product. 2. Direct materials cost $1.20 per yard to purchase. 3. 15,600 units are budgeted to be produced in May. 4. The budgeted direct materials inventory balance at June 30 is$12,879. 5. Orr Company has budgeted the total cost of direct materials to bepurchased in May to be $58,230. 6. Orr Company wants to maintain monthly ending inventories of directmaterials equal to 25% of the following month's production needs. Calculate the total cost of direct materials to be purchased in June.

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