Drive, Inc

question 88

Multiple Choice

Drive, Inc.determined its estimated production for the month is 300,000 units.Each unit requires 2 kilograms of material.The beginning direct materials are 1% of the current months expected needs.Ending inventory desired is 7,500 kilograms.How much are estimated direct materials purchases in kilograms?

• A)601,500 kilograms
• B)607,500 kilograms
• C)301,500 kilograms
• D)598,500 kilograms

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Definitions:

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