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Sherman has budgeted sales for the upcoming quarter as follows: Units April 1,200 May 1,500 June 1,350 The desired ending finished goods inventory for
Sherman has budgeted sales for the upcoming quarter as follows: Units April 1,200 May 1,500 June 1,350 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, and must be paid for in the month of purchase, the budgeted direct materials purchases (in dollars) for April are: Multiple Choice $13,500. $20,250. $6,750. $21,375.
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