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Prestwich Company has budgeted production for next year as follows: QuarterFirstSecondThirdFourthProduction in units88,000108,000118,00098,000 Two pounds of material A are required for each unit produced. The
Prestwich Company has budgeted production for next year as follows:
QuarterFirstSecondThirdFourthProduction in units88,000108,000118,00098,000
Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 30% of the next quarter's production needs for material A. A total of 52,800 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
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