Question

Data pertaining to the direct materials inventories are as follows:
  Beginning Inventory Ending Inventory
Wood 2,100 b.f. 1,600 b.f.
Fiberglass 1,100 yards 2,100 yards

Variable manufacturing overhead is $20 per direct labor-hour. There are also $28,770 in
fixed manufacturing overhead cots budgeted for 2018. Both variable and fixed overhead
costs are allocated based on direct manufacturing labor-hours.

Other data include the following:
  2017 Unit Price 2018 Unit Price
Wood $38.00 per b.f. $40.00 per b.f.
Fiberglass $14 per yard $15 per yard
Direct labor $34.00 per hour $35.00 per hour

Assume Fullerton uses a FIFO inventory method for both direct materials and finished
goods. Ignore work in process in your calculations.

What is total cost of direct materials to be used?
Group of answer choices
$3,352,250
$4,135,300
$4,217,500
$3,714,250

Answer 1

Answer: $3,714,250

Explanation:

units Producted

Budgeted selling units	3910
Desired ending units	900
Total units required	4810
Less: Opening units	700
Units to be Produced	4110

Cost of materias used:

Particulars	Wood	Fiberglass
Units to be Produced	4110	4110
Material req per unit	17	15
material req for production	69870	61650
Beginning material	2100	1100
Cost	$38	$14
Total cost(A)	$79,800	$15,400
Purchased material	67770	60550
Cost	$40	$15
Total cost(B)	$2,710,800	$908,250
cost of materials used(A+B)	$2,790,600	$923,650

Total cost = $2,790,600 + $923,650 = $3,714,250