The dollar amount of Material C used in production during the year is

A) $746,400
B) $724,800
C) $824,400
D) $758,160

Question

The dollar amount of Material C used in production during the year isA) $746,400B) $724,800C) $824,400D) $758,160

Elizabeth Greaves · Accepted Answer

Final Answer : A, Explanation :  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.

The dollar amount of Material C used in production during the year is

A) $746,400
B) $724,800
C) $824,400
D) $758,160

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