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Zortek Corporation budgets production of 400 units in January and 200 units in February. Each finished unit requires five pounds of material Z, which costs
Zortek Corporation budgets production of 400 units in January and 200 units in February. Each finished unit requires five pounds of material Z, which costs $2 per pound. Each months ending inventory of material Z should be 40% of the following months budgeted production. The January 1 inventory has 800 pounds of material Z. Prepare a direct materials budget for January.
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