# Walton Company determines that 27,000 pounds of direct materials are needed for production in - 10533

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## yousafbhutta

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Walton Company determines that 27,000 pounds of direct materials are needed for production in July. There are 1,600 pounds of direct materials on hand at July 1 and the desired ending inventory is 1,400 pounds. If the cost per unit of direct materials is \$3, what is the budgeted total cost of direct materials purchases?

 A 79,200 B 80,400 C 81,600 D 82,800

Solution Description

Walton Company determines that 27,000 pounds of direct materials are needed for production in July. There are 1,600 pounds of direct materials on hand at July 1 and the desired ending inventory is 1,400 pounds. If the cost per unit of direct materials is \$3, what is the budgeted total cost of direct materials purchases?