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The cost accountant of Cornwells Co., wants to prepare a direct material budget for the next month. Product sales are expected to be 6,000 units.
The cost accountant of Cornwells Co., wants to prepare a direct material budget for the next month. Product sales are expected to be 6,000 units. Each unit of the final product requires 5 units of direct material. For this purpose, the cost accountant has the following data. (DM cost is $10 per unit). Finished goods inventory DM inventory Beginning 1,000 units 4,000 units Ending (targetted) 2.000 units 6,000 units Required: what is total cost of the DM purchase budget
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