Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 639,000 units, estimated beginning inventory is 101,000 units, and desired ending inventory is 82,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ $0.52 per pound Material B 1.00 lb. per unit @ $2.30 per pound Material C 1.20 lb. per unit @ $0.84 per pound The dollar amount of material A used in production during the year is

Question

Business

Dustin Mays

11 May, 23:32

Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 639,000 units, estimated beginning inventory is 101,000 units, and desired ending inventory is 82,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ $0.52 per pound Material B 1.00 lb. per unit @ $2.30 per pound Material C 1.20 lb. per unit @ $0.84 per pound The dollar amount of material A used in production during the year is

+5

Answers (1)

Know the Answer?

Julius Sloan · Answer 1

dollar value=$114452

Explanation:

We need to calculate the dollar value of material A needed during this year.

First step is to calculate how many units are necessary

Budgeted Sales = 639000 units

Ending inventory=82000 units

Beginning Inventory = 101000 units

Production of the year = 620000 (639000+82000-101000)

Second step is to calculate how much of material A is required

620000 units*0,50lb/un = 310000lb

Finally, we need to convert lb to pounds/$

1lb=0,71 punds

310000lb*0,71=220100pounds

dollar value=220100*$0,52=114452