Production Estimates for August Are as Follows: for Each

question 101

Multiple Choice

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

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