Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials per unit produced. We

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Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials per unit produced. We are currently at the end of the first quarter of the year and there are 50,000 pounds of material on hand. The company's policy is to maintain an end-of-quarter inventory of materials equal to 25 percent of the following quarter's material requirements for production. How many units of product were produced in the first quarter of the year? Under the assumption that production will increase by 10 percent in the second quarter, what are the direct materials requirements (in pounds) for planned production in the second quarter?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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