Question

Manicotti Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 108,000 units, and desired ending inventory is 90,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A .50 lb. per unit @ $ .60 per pound Material B 1.00 lb. per unit @ $1.70 per pound Material C 1.20 lb. per unit @ $1.00 per pound The dollar amount of direct material A used in production during the year is: Group of answer choices $186,600 $181,200 $240,000 $210,600

Answer 1

$186,600

Step-by-step explanation:

budgeted sales for the year 6,40,000

desired ending inventory 90,000

estimated beginning inventory (1,08,000)

total units to the produced 6,22,000

Material A used 0.5 lb per unit of production @$0.60 per pound so, the dollar amount of direct material A used in production:

= 622,000*0.50*0.6

= $186,600

Therefore, The dollar amount of direct material A used in production during the year is $186,600.