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11. A company is planning to produce 1,740 units during the month. Each unit requires 44...

11. A company is planning to produce 1,740 units during the month. Each unit requires 44 pounds of materials. The materials cost $0.40 per pound. The company has 7,800 pounds of materials in beginning inventory and wants to have 9,000 pounds in ending inventory. What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

a. 76,560

b. 75,360

c. 77,760

d. 80,400

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Answer #1

Budgeted purchases

= Budgeted production + Desired ending inventory - Beginning inventory

= (1740*44) + 9,000 - 7,800

= 76,560 + 9,000 - 7,800

= 77,760
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