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Help with this problem would be appreciated! Thanks in advance!! Orr Company makes and sells a single product. The company is inthe process of preparing
Help with this problem would be appreciated! Thanks in advance!!
Orr Company makes and sells a single product. The company is inthe process of preparing a direct materials purchases budget andhas provided the Following information: 1. It takes three yards of direct materials to produce one unit ofthis product. 2. Direct materials cost $1.20 per yard to purchase. 3. 15,600 units are budgeted to be produced in May. 4. The budgeted direct materials inventory balance at June 30 is$12,879. 5. Orr Company has budgeted the total cost of direct materials to bepurchased in May to be $58,230. 6. Orr Company wants to maintain monthly ending inventories of directmaterials equal to 25% of the following month's production needs. Calculate the total cost of direct materials to be purchased in June.Step by Step Solution
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