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Flagstaff Company has budgeted production units of 9,000 for July and 9,200 for August. The...

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Accounting

Flagstaff Company has budgeted production units of 9,000 for July and 9,200 for August. The direct materials requirement per unit is 3 ounces (oz). The company requires to have saftey stock of direct materials on hand at the end of each month to complete 30% of the units of budgeted production in the following month. There was 8,100 ounces of direct materials in inventory at the start of July. The total ounces of direct materials to be purchased in July is:
35,280 oz.
27,180 oz.
26,820 oz.
27,000 oz.
27,600 oz.

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