Question: Use the information below for August production to answer the questions that follow. 12,000 Production estimates for August are as follows: Estimated inventory (units), August
Use the information below for August production to answer the questions that follow. 12,000 Production estimates for August are as follows: Estimated inventory (units), August 1 Desired inventory (units), August 31 Expected sales volume (units), August 9,000 75,000 For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3 lb. Material B (S18 per lb.) V lb The total direct materials purchases (assuming no beginning or ending inventory of material) of Material A and Material B required for August production is O a $1,170,000 for A; S702,000 for B O b. $1,080,000 for A: 5648,000 for B O S1,125,000 for A: $675,000 for B Od. $1,080,000 for A: $1,296,000 for B
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