Production estimates for July are as follows:Estimated inventory (units), July 1 8,500Desired inventory (units), July 31 10,500Expected sales volume (units), July 76,000For 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 number of pounds of materials A and B required for July production is:

Question

Business

Judy

12 May, 11:32

Production estimates for July are as follows:Estimated inventory (units), July 1 8,500Desired inventory (units), July 31 10,500Expected sales volume (units), July 76,000For 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 number of pounds of materials A and B required for July production is:

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Answers (1)

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Lily Willis · Answer 1

Material A = 234,000 lbs.

Material B = 39,000 lbs.

Explanation:

First we must determine how many units we have to manufacture:

expected sales + ending inventory - beginning inventory = 76,000 + 10,500 - 8,500 = 78,000 units to be manufactured

now we calculate the amount of direct materials used:

Material A: 78,000 units x 3 lbs. per unit = 234,000 lbs.

Material B: 78,000 units x 1/2 lb. per unit = 39,000 lbs.