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Compute the total amount of direct materials in ounces

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Question - Flagstaff Company has budgeted production units of 8,000 for July and 8,200 for August. The direct materials requirement per unit is 3 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 25% of the units budgeted in the following month. There was 6,000 ounces of direct material in inventory at the start of July.

Compute the total amount of direct materials in ounces, to be purchased in July?

24,000.

24,600.

30,150.

24,150.

23,850.

Reference no: EM132282243

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