Figure 1 Projected Sales for Sommers, Inc., for Next Year and Beginning

Multiple Choice

Figure 1
Projected sales for Sommers, Inc., for next year and beginning and ending inventory data are as follows:
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 1. 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