Fallgatter,Inc.,expects to sell 17,500 units.Each unit requires 3 pounds of direct materials at $12 per pound and 2 direct labor hours at $10 per direct labor hour.The overhead rate is $8 per direct labor hour.The beginning inventories are as follows: direct materials,2,000 pounds; finished goods,2,500 units.The planned ending inventories are as follows: direct materials,5,600 pounds; finished goods,3,000 units. Given a planned production of 10,000 units,what are the planned direct materials purchases?
A) $331,200
B) $295,200
C) $367,200
D) $403,200
Correct Answer:
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