Cash is running low, and Patience is working against the clock to purchase DM for the final month's production push. Each unit requires 7 pounds of material, with each pound costing $0.40. The company's target ending inventory for DM is 20% of the next month's production needs, and it expects to hold just that amount of inventory on November 30. Planned production in December and January is expected to be 1,000 units and 1,200 units, respectively. Prepare the DM purchases budget for December, determining both the quantity to be purchased and the total cost of purchases for the company. (Round DM cost per unit to 2 decimal places, e.g. 15.25.) December

Cash is running low, and Patience is working against the clock to purchase DM for the final month's production push. Each unit requires 7 pounds of material, with each pound costing $0.40. The company's target ending inventory for DM is 20% of the next month's production needs, and it expects to hold just that amount of inventory on November 30. Planned production in December and January is expected to be 1,000 units and 1,200 units, respectively. Prepare the DM purchases budget for December, determining both the quantity to be purchased and the total cost of purchases for the company. (Round DM cost per unit to 2 decimal places, e.g. 15.25.) December

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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