Production Estimates for August Are as Follows $\text { For each unit produced, the direct materials requirements are as follows: }$

question 74

Multiple Choice

Production estimates for August are as follows: $\begin{array}{lr}\text { Estimated inventory (units) , August 1 } & 12,000 \\\text { Desired inventory (units) , August } 31 & 9,000 \\\text { Expected sales volume (units) , August } & 75,000\end{array}$
$\text { For each unit produced, the direct materials requirements are as follows: }$
$\begin{array}{ll}\text { Direct material A }(\$ 5 \text { per } 1 \mathrm{~b} .) & 3 \mathrm{lbs} . \\\text { Direct material B }(\$ 15 \text { per } 1 \mathrm{~b} .) & 1 / 2 \mathrm{lb} .\end{array}$ ? The total direct materials purchases of materials A and B required for August production is:

• A) $1,260,000 for A; $630,000 for B.
• B) $1,080,000 for A; $540,000 for B.
• C) $1,125,000 for A; $562,500 for B.
• D) $1,170,000 for A; $585,000 for B.

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Definitions:

Indirect Message

Communication that conveys a point in a roundabout or less straightforward manner, often used to soften the delivery of sensitive information.

Negative News

Information or updates that are unfavorable, disappointing, or pessimistic, often requiring careful communication.

Explanation

A statement or account that makes something clear by describing it in more detail or revealing relevant facts or ideas.

Buffer

A temporary storage area, typically in the context of computer memory, used to hold data while it is being moved from one place to another.