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You can ignore everything that I've put in so far because it may or may not be incorrect Exercise 13-5 Marigold Industries has adopted the
You can ignore everything that I've put in so far because it may or may not be incorrect
Exercise 13-5 Marigold Industries has adopted the following production budget for the first 4 months of 2017. Month January February Units 10,410 8,280 Month March April Units 5,350 4,480 Each unit requires 5 pounds of raw materials costing $3 per pound. On December 31, 2016, the ending raw materials inventory was 9,420 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter. MARIGOLD INDUSTRIES Direct Materials Purchases Budget For the Quarter Ending March 31, 2017 January February March Units to be Produced 10410 8280 5350 Total Pounds Needed for Production 52050 41400 26750 Add Desired Ending Direct Materials Less Beginning Direct Materials Direct Materials Purchases Cost Per Pound Total Cost of Direct Materials PurchasesStep by Step Solution
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