Production Estimates for July Are as Follows: for Each

question 117

Multiple Choice

Production estimates for July are as follows: For each unit produced, the direct materials requirements are as follows:
The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is

• A) $1,080,000 for A; $648,000 for B
• B) $1,080,000 for A; $1,296,000 for B
• C) $1,170,000 for A; $702,000 for B
• D) $1,125,000 for A; $675,000 for B

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Definitions:

Implied Warranty

A legal term for the assurance that a product meets certain quality and reliability standards without being explicitly stated.

Particular Purpose

Refers to a specific goal or use that a buyer makes known to the seller at the time of purchase, affecting the sale's conditions.

UCC Section 2-315

Part of the Uniform Commercial Code, dealing with the implied warranty of fitness for a particular purpose in goods sales.

Implied Warranty

An unwritten guarantee that a product will meet a certain level of quality and reliability, even if not expressly stated.