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

question 130

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. $\begin{array}{lrl}\text { Material A } & .50 \mathrm{lb} \text { per unit } & @ \$ 0.60 \text { per pound } \\\text { Material B } & 1.00 \mathrm{lb} \text { per unit } & @ \$ 1.70 \text { per pound } \\\text { Material C } & 1.20 \mathrm{lb} \text { per unit } & @ \$ 1.00 \text { per pound }\end{array}$ ? The amount of direct material C purchased during the year is:

• A) $789,600.
• B) $768,000.
• C) $746,400.
• D) $650,400.

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