Knowledge Check $01$

Selected information from the direct materials budget of Perry Inc. is provided here:

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$$First$$Second$$Third$$FourthRequired production in units of finished goods$15,00012,5007,50015,000$Units of raw materials needed per unit of finished goods$4444$Units of raw materials needed to meet production$60,00050,00030,00060,000$Desired units of ending raw materials inventory$???24,000$Total units of raw materials needed$$Units of beginning raw materials inventory$16,000???$Units of raw materials to be purchased$????$Unit cost of raw materials$$5$$$5$$$5$$$5$Cost of raw materials to be purchased$????$

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Perry, Inc. desires to maintain the ending inventory of raw materials at $40$ percent of the next quarter's raw material needs. What is the cost of raw materials to be purchased in the first quarter?

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