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Question 5 of 9 -/3 View Policies Current Attempt in Progress Nancy Daniel. Waterway & Paul Fabricators purchasing manager, has just received the company's production
Question 5 of 9 -/3 View Policies Current Attempt in Progress Nancy Daniel. Waterway & Paul Fabricators purchasing manager, has just received the company's production budget for the first quarter. January February March Quarter 21,000 28,000 33,000 82.000 + 5,600 6,600 6.800 6,800 Budgeted unit sales + Budgeted ending inventory Total units required - Beginning inventory Budgeted production 26,600 34,600 39,800 88,800 3,200 5,600 6,600 3,200 23,400 29,000 33,200 85,600 Budgeted sales for Aprilis 34.000 units and for May is 26.000 units. Each brick requires 6 pounds of clay, and Nancy expects to pay $150 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 10% of the following month's production needs. Company policy requires an ending finished goods inventory each month that will meet 20% of the following month's sales volume. Nancy expects to have 15,000 pounds of clay at a cost of $22,500 in inventory at the beginning of the year. Prepare Waterway & Paul's direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, eg. 52.75.) January February March Quz e Textbook and Media
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