Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys

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Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months' sales. The tiles cost $3 each and must be paid for in cash. The company has 28,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:
Midland Company buys tiles and prints different designs on them

Required
a. Estimate purchases (in units) for January, February, and March.
b. Estimate cash required to make purchases in January, February, and March.

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Fundamentals of Cost Accounting

ISBN: 978-1259565403

5th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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