ACCOUNTING
Multiple Choice
Konrade, Inc., expects to manufacture and sell 30,000 athletic uniforms for $80 each in 20x4. Direct materials costs are $20, direct manufacturing labor is $8, and manufacturing overhead is $6 for each uniform. The following inventory levels apply to 20x4:
Beginning inventory Ending inventory
Direct materials 12,000 units 9,000 units
Work-in-process inventory 0 units 0 units
Finished goods inventory 6,000 units 5,000 units
What is the amount budgeted for direct material purchases in 20x4?
a. $520,000
b. $600,000
c. $580,000
d. $760,000
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