Question
ABC corporation manufactures picture frames. Sales for August are expected to be 10,000 units of various sizes. Historically, the average frame requires four meters of
ABC corporation manufactures picture frames. Sales for August are expected to be 10,000 units of various sizes. Historically, the average frame requires four meters of wood framing, one square meter of glass, and two square meters of backing. Beginning inventory includes 1,500 meters of wood framing. 500 Square meters of glass, and 500 square meters of backing.
Current prices are $0.30 per metre of wood framing. $6.00 per square meter of glass and $2.20 per square meter of backing. Ending inventory should be 105% of beginning inventory. Purchase are paid for in the month acquired. Determine the total costs of wood framing purchases for May. (do not round intermediate calculations)
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