Calculate the total cost of direct materials

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Question - Dodd Company makes and offor of 26000 21000 33000 of 35 of sells a single product. Each finished unit requires four pounds direct materials. The budgeted units to be produced the third quarter the current year are given below:

Budgeted Units to be Produced

July, units

August, units

September, units

The company wants to maintain monthly ending inventories direct materials equal to % the next month's production needs. The cost of the direct materials is $1.75 per pound. Calculate the total cost of direct materials budgeted to be purchased in July.

Reference no: EM132787876

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