Production estimates for August are as follows: Estimated inventory (units), August 1 Desired Inventory (units),...
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Production estimates for August are as follows: Estimated inventory (units), August 1 Desired Inventory (units), August 31 Expected sales volume (units), August 12,000 9,000 75,000 For each unit produced, the direct materials requirements are as follows: 3 lbs. Direct material A ($5 per lb.) Direct material B ($15 per lb.) 1/2 lb. The total direct materials purchases of materials A and B required for August production is Oa. $1,080,000 for A: $540,000 for B Ob. $1,260,000 for A; $630,000 for B Oc. $1,170,000 for A: $585,000 for B Od. $1,125,000 for A; $562,500 for B
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