2. Calico Coat Company's production budget follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 14,000...
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2. Calico Coat Company's production budget follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 14,000 12,000 Budgeted production (units) 15,000 13,000 Each unit requires 5 yards of direct materials at a cost of $3 per yard. The company plans its direct materials purchases so that ending direct materials inventory equals 10 percent of the current quarter's production needs. At the beginning of the first quarter, 5,000 yards of direct materials were on hand. What is the budgeted cost of direct materials purchases for the first quarter? 2. Calico Coat Company's production budget follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 14,000 12,000 Budgeted production (units) 15,000 13,000 Each unit requires 5 yards of direct materials at a cost of $3 per yard. The company plans its direct materials purchases so that ending direct materials inventory equals 10 percent of the current quarter's production needs. At the beginning of the first quarter, 5,000 yards of direct materials were on hand. What is the budgeted cost of direct materials purchases for the first quarter?
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Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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