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Sharma Company just began its business on April 1 and has budgeted sales for the upcoming quarter as follows: April May June Units 1,900 2,200
Sharma Company just began its business on April 1 and has budgeted sales for the upcoming quarter as follows:
April | May | June | |
Units | 1,900 | 2,200 | 2,050 |
Since the business just started, it has no beginning inventories. The desired ending finished goods inventory for each month is one-half of next month's budgeted sales. Three pounds of direct material are required for each unit produced. If direct material costs $5 per pound, what is the total cost of direct materials to support April's production needs?
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