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 C 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 C used in production during the year is

Quizplus · Accepted Answer

The production requirement is calculated as: Budgeted sales (640,000 units) + Desired ending inventory (80,000 units) - Beginning inventory (98,000 units) = 622,000 units. Material C required is 1.2 lbs per unit, so total pounds needed = 622,000 units * 1.2 lbs = 746,400 lbs. At $1.00 per pound, the cost is $746,400.

Mandy Corporation Sells a Single Product