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Zortek Corp. budgets production of 340 units in January and 210 units in February. Each finished unit requires two pounds of raw material Z, which
Zortek Corp. budgets production of 340 units in January and 210 units in February. Each finished unit requires two pounds of raw material Z, which costs $3 per pound. Each months ending inventory of raw materials should be 30% of the following months budgeted production. The January 1 raw materials inventory has 150 pounds of Z. Prepare a direct materials budget for January. |
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