Mancini Corporation sells a single product. Budgeted sales for the year are anti

Question

Mancini Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 108,000 units, and desired ending inventory is 90,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A .50 lb. per unit @ $ .60 per pound Material B 1.00 lb. per unit @ $1.70 per pound Material C 1.20 lb. per unit @ $1.00 per pound The dollar amount of direct material A used in production during the year is: Answer $186,600 $181,200 $240,000 $210,600

Explanation / Answer

a.$186,600 Sales 640000 +ending inventory 90000-opening inventory 108000 = 622000 units to be produced. Material A is used 0.50 per unit of production and purchased at 0.60 per pound, multiply 622000 x 0.50 x 0.60 and you get 186,600

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