ABC manufactures t-shirts and is scheduled to produce 100 units in January and 150 units in February. The opening direct materials inventory at the start of January is 100 metres of fabric. Each t-shirt requires 1.2 metres of fabric at a cost of $0.75 per metre. If ABC desires 30% in the ending direct materials inventory how many metres of fabric should ABC purchase in January?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC manufactures t-shirts and is scheduled to produce 100 units in January and 150 units
in February. The opening direct materials inventory at the start of January is 100 metres
of fabric. Each t-shirt requires 1.2 metres of fabric at a cost of $0.75 per metre. If ABC
desires 30% in the ending direct materials inventory how many metres of fabric should
ABC purchase in January?
Select one:
166
74
120
65
Transcribed Image Text:ABC manufactures t-shirts and is scheduled to produce 100 units in January and 150 units in February. The opening direct materials inventory at the start of January is 100 metres of fabric. Each t-shirt requires 1.2 metres of fabric at a cost of $0.75 per metre. If ABC desires 30% in the ending direct materials inventory how many metres of fabric should ABC purchase in January? Select one: 166 74 120 65
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