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Paneless Windows has budgeted annual unit quarterly sales and production data as follows: View the budgeted annual unit quarterly sales and production data. ' Each
Paneless Windows has budgeted annual unit quarterly sales and production data as follows: View the budgeted annual unit quarterly sales and production data. ' Each unit requires 6 pounds of direct materials at a standard cost of $13 per pound. ' Payments for purchases of materials are 90% in the same month and 10% in the next month. Read the requirements. Requirement a. How many units should be produced for the quarter? Units to be produced for the quarter = Requirement b. How many pounds should be purchased for the quarter? Pounds of direct materials to be purchased for the quarter = Requirement c. What is the cost of purchases for the quarter? The total cost of direct material purchases for the quarter = Requirement d. The vendor for direct materials has offered the company a 2% discount if the company pays in the same month as the purchase. Describe the analysis that the company should undertake to decide whether to accept the discount offer from the supplier. Managers should V Budgeted annual unit quarterly sales and production data- Sales 38,000 units at $150 Beginning inventory, finished goods 1,000 units Desired ending inventory, finished goods 5,500 units Beginning inventory, direct materials 3,500 pounds Desired ending inventory, direct materials 1,300 pounds
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