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1.A business has the following budgeted financial data for next year: January production units8,000 February production units9,000 Direct material units per finished unit4 Cost per

1.A business has the following budgeted financial data for next year:

January production units8,000

February production units9,000

Direct material units per finished unit4

Cost per direct material unit$1.50

January raw materials beginning inventory units 5,000

The business desires to maintain a raw materials ending inventory equal to meeting the production needs of 10% of the next month's production units (assume there are no indirect materials).

Determine the required raw material purchase units AND purchase dollars for January.

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