Cape Corporation Sells a Single Product ? the Amount of Direct Material a Purchased During the Are

question 98

Multiple Choice

Cape Corporation sells a single product.Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units.The quantities of direct materials expected to be used for each unit of finished product are given below. $\begin{array}{lll}\text { Material A } & .50 \mathrm{lb} \text { per unit } & @ \$ 0.60 \text { per pound } \\\text { Material B } & 1.00 \mathrm{lb} \text { per unit } & @ \$ 1.70 \text { per pound } \\\text { Material C } & 1.20 \mathrm{lb} \text { per unit } & @ \$ 1.00 \text { per pound }\end{array}$ ? The amount of direct material A purchased during the year is:

• A) $216,000.
• B) $186,600.
• C) $192,000.
• D) $245,400.

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Definitions:

Flat Sheet

A type of raw material that comes in flat panels, typically used in manufacturing or construction; it can be cut and shaped into various parts and forms.

Without Cutting

A manufacturing or shaping process that does not involve removing material, such as bending, casting, or forming.

General Contour

An outline that represents the shape or form of an object, especially used in design and drafting to indicate general shapes.

Front View

The principal view of an object in technical drawing, depicting the most characteristics of the design, typically facing the observer directly.