Ask Question
10 March, 01:11

Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 pounds of direct materials on hand at July 1 and the desired ending inventory is 2,800 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?

+5
Answers (1)
  1. 10 March, 02:18
    0
    cost of direct materials purchases 160,800

    Explanation:

    pounds required for production 54,000

    desired ending inventory 2,800

    total needs 56,800

    beginning inventory (3,200)

    units to be purchased 53,600

    cost per unit of direct materials 3

    cost of direct materials purchases 160,800

    Notes:

    The pounds for production and the ending inventory are the raw materials demand.

    The beginning inventory is a portion we already have, so we need to purchase less.

    Then, we multiply the pounds to be purchased by their cost to get the total cost for direct materials
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 pounds of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers