The Direct Materials Budget Shows What Are the Direct Materials Per Unit?
A)

question 67

Multiple Choice

The direct materials budget shows: $\begin{array}{ll}\text { Units to be produced } & 3,000 \\\text { Total pounds needed for production } & 9,000 \\\text { Total materials required } & 9,900\end{array}$ What are the direct materials per unit?

• A).33 pounds
• B)3.0 pounds
• C)3.3 pounds
• D)Cannot be determined from the data provided.

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Definitions:

Debit Balances

Accounts on the left-hand side of a double-entry bookkeeping system that typically signify assets or expenses.

Permanent Account

An account that carries its ending balance over from one accounting period to the next, such as assets, liabilities, and equity accounts.

Doubtful Accounts

Accounts receivable that a company believes it may not be able to collect, often leading to the creation of an allowance for doubtful accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in its income statement.