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Production estimates for August for Jay Company are as follows: Line Item Description...

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Accounting

Production estimates for August for Jay Company are as follows:

Line Item Description Unit
Estimated inventory (units), August 1 12,000
Desired inventory (units), August 31 9,000
Expected sales volume (units), August 75,000

For each unit produced, the direct materials requirements are as follows:

Line Item Description Value
Material A ($5 per lb.) 3.0 lbs.
Material B ($18 per lb.) 0.5 lb.

The number of pounds of Materials A and B required for August production is

a. 225,000 lbs. of A; 37,500 lbs. of B

b. 216,000 lbs. of A; 36,000 lbs. of B

c. 216,000 lbs. of A; 72,000 lbs. of B

d. 234,000 lbs. of A; 39,000 lbs. of B

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