Mandy Corporation Sells a Single Product

question 64

Multiple Choice

Mandy 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.​
Material A: 0.5 lb. per unit @ $0.60 per pound
Material B: 1.0 lb. per unit @ $1.70 per pound
Material C: 1.2 lbs. per unit @ $1.00 per pound
-The dollar amount of Material C used in production during the year is

• A)$746,400
• B)$724,800
• C)$824,400
• D)$758,160

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Definitions:

Indigenous Production

The process of manufacturing goods within a particular region or territory using local resources and labor.

Service Economy

An economic phase in which the service sector generates more wealth than the manufacturing sector of the economy, characterized by a high volume of services relative to goods.