Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.
Material A: 0.5 lb. per unit @ $0.60 per pound
Material B: 1.0 lb. per unit @ $1.70 per pound
Material C: 1.2 lbs. per unit @ $1.00 per pound
-The dollar amount of Material B used in production during the year is

Question

Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.​
Material A: 0.5 lb. per unit @ $0.60 per pound
Material B: 1.0 lb. per unit @ $1.70 per pound
Material C: 1.2 lbs. per unit @ $1.00 per pound
-The dollar amount of Material B used in production during the year is

Quizplus · Accepted Answer

Material B: 1.0 lb. per unit @ $1.70 per poundUnits to be produced = Budgeted sales + Desired ending inventory - Beginning inventory= 640,000 + 80,000 - 98,000= 622,000 unitsMaterial B required = 622,000 units * 1.0 lb. per unit= 622,000 lbs.Dollar amount of Material B used = 622,000 lbs. * $1.70 per pound= $1,057,400

Mandy Corporation Sells a Single Product