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

question 42

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 B purchased during the year is:

• A) $1,224,000.
• B) $1,390,600.
• C) $1,088,000.
• D) $1,057,400.

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Definitions:

Ledger

A collection of accounts in which the transactions of a business are categorized and recorded, serving as the main accounting record.

Account

A record that keeps track of financial transactions of a specific type or for a specific purpose within an organization.

General Ledger

A comprehensive record of all financial transactions that occur within a company, serving as the primary data source for the financial statements.

Financial Statements

Structured reports that detail the financial activities and conditions of a business, including balance sheet, income statement, and cash flow statement.