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Suppose a company has created the following production budget: Month Budgeted Production February 4 5 , 0 0 0 units March 7 5 , 0

Suppose a company has created the following production budget:
Month Budgeted Production
February 45,000 units
March 75,000 units
April 60,000 units
May 80,000 units
Each unit produced requires 4 pounds of direct materials. Management wants to have a direct
materials inventory on hand at the end of each month that is 50% of the following months
production needs. Januarys ending inventory of direct materials is expected to be 90,000
pounds. It takes 45 minutes for an assembly line worker to produce each unit, and the assembly
line workers are paid $20 per hour.
How many pounds of direct materials should the company plan to purchase in February, March,
and April? Please provide full explanation....

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