Walton Company Determines That 27,000 Pounds of Direct Materials Are

Multiple Choice

Walton Company determines that 27,000 pounds of direct materials are needed for production in July. There are 1,600 pounds of direct materials on hand at July 1 and the desired ending inventory is 1,400 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?

A) 79,200.
B) 80,400.
C) 81,600.
D) 82,800.