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AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to
AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to this product for the next five months: units to cost of direct materials be produced to be purchased August 37,100 $385,020 September ? $464,430 October 33,000 $444,600 November 28,800 ? December 28,700 ? AMZ wants to maintain monthly ending inventories of direct materials equal to 80% of the next month's production needs. The cost of direct materials is $5 per yard. Part A.) Calculate the number of units budgeted to be produced in September. Part B.) AMZ wants to maintain monthly ending inventories of direct materials equal to 80% of the next month's production needs. The cost of direct materials is $5 per yard. Assume AMZ Corp. pays for 60% of a month's purchases of direct materials in the month of purchase and the other 40% is paid in the following month. Calculate AMZ Corporation's budgeted accounts payable balance at November 30. Part C.) Calculate the budgeted direct materials inventory account balance at November 30.
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