Solution-Find the total amount of direct materials in ounces

Find the total amount of direct materials in ounces

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Reference no: EM132515795

Question 1: Flagstaff Company has budgeted production units of 9,700 for July and 9,900 for August. The direct materials requirement per unit is 2 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 20% of the units budgeted in the following month. There was 3,880 ounces of direct material in inventory at the start of July. The total amount of direct materials in ounces, to be purchased in July is:

Multiple Choice

Option 1: 19,400.

Option 2: 19,800.

Option 3: 23,360.

Option 4: 19,480.

Option 5: 19,320.

Reference no: EM132515795

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Find the total amount of direct materials in ounces

Reference no: EM132515795

Reference no: EM132515795

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