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?

Answer rating: 100% (QA)

answer Budget cost of direct materials purchase for the 1st Quarter ABI Direct Materials require... View the full answer