Orr Company makes and sells a single product.    The company is in the process of preparing a direct materials purchases budget and has provided the following information:    1.  It takes three yards of direct materials to produce one unit of     this 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     $12,870.   5.  Orr Company has budgeted the total cost of direct materials to be     purchased in May to be $58,230.   6.  Orr Company wants to maintain monthly ending inventories of direct     materials equal to 25% of the following month's production needs.  Calculate the total cost of direct materials to be purchased in June.

Answer rating: 100% (QA)

SOLUTION To calculate the total cost of direct materials to be purchased in June we need to use the ... View the full answer