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The production budget for Ventura Company shows the company expects to produce 4,000 units in the first quarter and 3,300 units in the second quarter.
The production budget for Ventura Company shows the company expects to produce 4,000 units in the first quarter and 3,300 units in the second quarter. Each unit requires 30 pounds of direct materials at a cost of $6 per pound. The company prefers to maintain raw materials inventory equal to 20 percent of next quarter's materials needed in production. Required: Prepare a direct materials purchases budget for the first quarter.
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