-The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is
A)$1,080,000 for A; $1,296,000 for B
B)$1,080,000 for A; $648,000 for B
C)$1,125,000 for A; $675,000 for B
D)$1,170,000 for A; $702,000 for B

Question

-The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is
A)$1,080,000 for A; $1,296,000 for B 
B)$1,080,000 for A; $648,000 for B 
C)$1,125,000 for A; $675,000 for B 
D)$1,170,000 for A; $702,000 for B

Quizplus · Accepted Answer

The total direct materials purchases are calculated by multiplying the quantity of materials needed by their respective costs. The correct calculation results in $1,080,000 for Material A and $648,000 for Material B.

-The Total Direct Materials Purchases (Assuming No Beginning or Ending