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The Rouse Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 11,000 units
The Rouse Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 11,000 units of finished go on hand at December 31 and has a target finished goods inventory of 12,000 units at the end of the succeeding quarter. It takes 4 gallons of direct materials to make one unit of finished product. The company has inventory of 64,000 gallons of direct materials at December 31 and has a target ending inventory of 55,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Rouse Company purchase during the 3 months ending March 317 CCO Select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased. Direct Material Purchases Budget For the 3 Months Ending March 31 To be used in production Add target ending inventory 55,000 Total requirements Deduct beginning inventory 64,000 Purchases to be made (in gallons) Clear all Final check
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