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d. Of each month's direct materials purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the
d. Of each month's direct materials purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $2 per pound. Ending inventory of direct materials should be 10% of next month's production needs.
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