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The Tobler Company had budgeted production for the year as follows: Quarter 1 2 3 4 Production in units 16,000 18,000 22,000 20,000 10 pounds
The Tobler Company had budgeted production for the year as follows:
Quarter | 1 | 2 | 3 | 4 |
Production in units | 16,000 | 18,000 | 22,000 | 20,000 |
10 pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 10,000 lbs. The raw materials inventory at the end of each quarter should equal 15% of the next quarter's production needs in materials. Budgeted purchases of raw materials in the second quarter would be (in lbs.): |
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