A company makes a product that requires 3 kilograms of raw material A and 5 meters of

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A company makes a product that requires 3 kilograms of raw material A and 5 meters of wire per unit. The cost of raw material A is \($10\) per kilogram. The cost of the wire is

\($1\) per meter. There are 100 kilograms of raw material A in beginning inventory. The company would like to have 200 kilograms of raw material A in ending inventory.

There are 200 meters of wire in beginning inventory and the company would like to have 500 meters of wire in ending inventory.

What is the cost of purchasing raw materials during the period if 1,000 units must be produced?

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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