Question
Jordan Company makes and sells a single product. It takes four pounds of direct materials to produce one unit of this product. The budgeted units
Jordan Company makes and sells a single product. It takes four pounds of direct materials to produce one unit of this product. The budgeted units to be produced for the next three months is given below: Budgeted Units to be Produced September 22,400 units October 31,900 units November 26,100 units Jordan Company wants to maintain monthly ending inventories of direct materials that are equal to 18% of the following month's production needs. The cost of direct materials is $2.75 per pound. Calculate the total cost of direct materials budgeted to be purchased in September.
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