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Blue Co. 's budgeted production schedule, by quarters, for the coming year is as follows: Quarter 1 = 22,500 units Quarter 2 = 19,000 units
Blue Co. 's budgeted production schedule, by quarters, for the coming year is as follows:
Quarter 1 = 22,500 units
Quarter 2 = 19,000 units
Quarter 3 = 17,000 units
Quarter 4 = 24,000 units
Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with 30% of that quarter's direct materials production requirements.
Calculate Golden's budgeted direct materials purchases for the second quarter (Quarter 2).
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