Whistle Works manufacturers safety whistle keychains. They have the following in
ID: 2573670 • Letter: W
Question
Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget: Units to be produced October November December 4,500 4,750 5,200 Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. What is the total cost of direct materials for October to meet production needs? OA. $2,250 OB. $6,712.50 OC. $2,263 O D. $6,787.50Explanation / Answer
Total Production in October :-
Total Cost of Direct Materials = 4525 * 3 * $0.5 = $6787.5
The Answer is "D"
Units Produced in October 4500 Less : Openig Inventory (4500*10%) (450) Add : Ending Inventory (4750*10%) 475 Total Production In October 4525Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.