Question

Jordan Auto has developed the following production plan for its new auto part.


Each unit contains three pounds of raw material. The desired raw materials ending inventory is 120 percent of the next month’s production needs, plus an additional 500 pounds. January’s beginning inventory meets this requirement.

Required

Prepare the direct materials purchases budget for the fi rst three months of the comingyear.


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  • CreatedFebruary 21, 2014
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