Excerpt from Areojet Corporation records for month of February: Per Unit Per Month
Selling price $ 200,000
Direct materials used in production 40,000
Direct labor 10,000
Variable manufacturing overhead 2,000
Fixed manufacturing overhead $ 120,000
Variable selling and administrative expenses 20,000
Fixed selling and administrative expenses 40,000
February
Beginning Inventory 0
Units Produced 3
Units Sold 3
Ending inventory 0
Assuming the absorption costing method is used, what is the total manufacturing costs added to work in process during the month of February?
a) $52,000
b) $92,000
c) $87,000
d) $122,000

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)