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Please help me solve this! Backyard Warehouse makes backyard birdhouses. The company sells the birdhouses to home improvement stores The company would also like to
Please help me solve this!
Backyard Warehouse makes backyard birdhouses. The company sells the birdhouses to home improvement stores The company would also like to maintain an ending stock of finished birdhouses equal to 25% of the for $20 per birdhouse. Each birdhouse requires 1.0 board feet of wood, which the company obtains at a cost of $3 next month's sales. Sales data for the company is as follows: per board foot. The company would like to maintain an ending stock of wood equal to 15% of the next month's (Click the icon to view the sales data.) production requirements. (Click the icon to view additional data.) Read the reguirements. Data table More info In any given month, 30% of the total sales are cash sales, while the remainder are credit sales. The company's collection history indicates that 60% of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5% is never collected. Assume that the total cost of direct materials purchases in December was $500,000. The company pays 60% of its direct materials purchases in the month of purchase, and pays the remaining 40% in the month after purchaseStep by Step Solution
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