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The Following Facts Are Known \bullet The Total Pounds Needed for Production Are 2 Times the for Production

Question 166

Essay

The following facts are known:
\bullet The total pounds needed for production are 2 times the units to be produced.
\bullet The desired ending direct materials inventory is 20% of the total pounds needed for production.
\bullet The beginning direct materials inventory is equal in number to 10% of the units to be produced.
\bullet Cost per pound is $10.
\bullet Total cost of the direct materials purchases is $1,610,000.
Instructions
Prepare a direct materials budget for the period.

Correct Answer:

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Let X = total units to be prod...

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