Question
TJR, Inc. is working on its raw materials purchases budget for the month of February. Sales for February and March are projected to be 40,000
TJR, Inc. is working on its raw materials purchases budget for the month of February. Sales for February and March are projected to be 40,000 and 45,000 units respectively. Production from the production budget is to be 43,000 and 39,000 units for February and March. Each unit produced requires 4 pounds of direct materials that costs $10 per pound. TJR likes to keep 40% of the required direct materials for the next month in inventory at all times but at the end of January ending direct materials inventory was 62,000 pounds. How many dollars of direct materials should be purchased and shown on the cash flow budget?
Question 16 options:
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530,000
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1,724,000
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172,400
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171,600
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