Question

Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to bei 683,000 units, estimated begintinig inventory is i07,000 units, and desired ending imventory is 90,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.

Material A 0.50bb. per unit 9.50 .67 per pound
Material 8.1 .00 tb per unit 0.$2.17 per pound
Materiat C1.20lb, per unt is 51.17 per pound

The dollar amount of Materiat 8 used in production during the year is
a. 81.445 .230
b. 51.734 .764
c. 51,156,176
d. 52.167at10

Answer 1

The dollar amount of Material B used in production during the year is $936,897.01. Therefore, the correct option is B.

Step-by-step explanation:

The dollar amount of Material B used in production during the year can be calculated by multiplying the estimated quantity of units produced by the price per unit of Material B. The quantity of Material B used per unit of finished product is given as 0.67 pounds. Therefore, the dollar amount of Material B used in production is:

Dollar amount = Quantity of units produced x Quantity of Material B used per unit x Price per pound of Material B
Dollar amount = 683,000 units x 0.67 pounds/unit x $2.17/pound = $936,897.01

Therefore, the correct answer is option b. $936,897.01.