Question

Direct materials needed for production is calculated by_________.

a. subtracting units to be produced from direct materials per unit.
b. dividing units to be produced by direct materials per unit.
c. subtracting direct materials per unit from units to be produced.
d. multiplying units to be produced by direct materials per unit.
e. adding units to be produced to direct materials per unit.

Answer 1

d. multiplying units to be produced by direct materials per unit.

Step-by-step explanation:

To determine the total direct material, key parameters required are the direct material cost per unit and the number of units to be produced. The product of these two parameters gives the direct material cost required for production.

For example, if there are 10 units of an item to be produced and the direct material cost per unit is $4, the direct material cost needed for production is $40 derived from the product of the number of units and the direct material cost per unit.

Therefore, the right option is d. multiplying units to be produced by direct materials per unit.