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Production Estimates for July for Starling Co

Question 108

Multiple Choice

Production estimates for July for Starling Co. are as follows: Production estimates for July for Starling Co. are as follows:   For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3.0 lbs.Material B ($18 per lb.) 0.5 lb.​ -The total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory)  required for July production is A) $1,080,000 for A; $648,000 for B B) $1,080,000 for A; $1,296,000 for B C) $1,170,000 for A; $702,000 for B D) $1,125,000 for A; $675,000 for B For each unit produced, the direct materials requirements are as follows:
Material A ($5 per lb.) 3.0 lbs.Material B ($18 per lb.) 0.5 lb.​
-The total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory) required for July production is


A) $1,080,000 for A; $648,000 for B
B) $1,080,000 for A; $1,296,000 for B
C) $1,170,000 for A; $702,000 for B
D) $1,125,000 for A; $675,000 for B

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