Question
James Co. manufactures leather briefcases and carryalls. Jamess production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather
James Co. manufactures leather briefcases and carryalls. Jamess production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather fabric and James maintains an ending inventory of leather fabric equal to 20% of the next months production needs.
| February | March | April | May | June | |
|---|---|---|---|---|---|
| Budgeted production | 50000 | 43000 | 59000 | 63000 | 57000 |
If each yard of leather fabric costs $8.50, how much should James budget for purchases of fabric in April?
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Strategic Pricing And Management Accounting
Authors: David Dugdale
1st Edition
78-1032224824, 1032224827
