Dewitt Industries has adopted the following production budget for the first 4 months of 2012. Each unit
Question:
Dewitt Industries has adopted the following production budget for the first 4 months of 2012.
Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2011, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements.
Instructions
Prepare a direct materials purchases budget by month for the first quarter.
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Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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