Figure 15-3
Projected Sales for Sommers, Inc The Selling Price Is £40 Per Unit

Multiple Choice

Figure 15-3
Projected sales for Sommers, Inc., for next year and beginning and ending inventory data are as follows: $\begin{array}{lr}\text { Sales } & 50,000 \text { units } \\\text { Beginning inventory } & 4,000 \text { units } \\\text { Desired ending inventory } & 8,000 \text { units }\end{array}$ The selling price is £40 per unit. Each unit requires four pounds of material which costs £6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year.
-Refer to Figure 15-3. Sommers' budgeted total purchase cost of direct materials would be

A) £1,350,000.
B) £1,242,000.
C) £1,206,000.
D) £1,296,000.