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Flagstaff Company has budgeted production units of 9,900 for July and 10,100 for August. The...

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Accounting

Flagstaff Company has budgeted production units of 9,900 for July and 10,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 30% of the units budgeted in the following month. There was 5,940 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.25 per ounce, is:

Multiple Choice

$24,900.

$32,325.

$17,325.

$24,600.

$24,750.

A sporting equipment store expects to purchase $7,600 of ski boots in October. The store had $3,600 of ski boots in merchandise inventory at the beginning of October, and expects to have $2,600 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

Multiple Choice

$10,200.

$8,600.

$11,200.

$6,200.

$7,600.

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