Richard Inc

Multiple Choice

Richard Inc.expects to sell 28,000 units.Each unit requires 4 pounds of direct materials at $15 per pound and 3 direct labor hours at $12 per direct labor hour.The overhead rate is $9 per direct labor hour.The beginning inventories are as follows: direct materials,2,500 pounds;finished goods,3,100 units.The planned ending inventories are as follows: direct materials,4,000 pounds;finished goods,3,200 units.
-Given a planned production of 5,000 units,what are the planned direct materials purchases of Richard?

A) $300,000
B) $258,000
C) $240,000
D) $322,500