Haft Construction Company Determines That 54000 Pounds of Direct Materials

Multiple Choice

Haft Construction Company determines that 54000 pounds of direct materials are needed for production in July. There are 3200 pounds of direct materials on hand at July 1 and the desired ending inventory is 2800 pounds. If the cost per unit of direct materials is $3 what is the budgeted total cost of direct materials purchases?

A) 158400.
B) 160800.
C) 163200.
D) 165600.