Preston, Incorporated, manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 330 units in July and 420 units in August. Each unit requires 11 feet of wood at a cost of $1.20 per foot. Preston wants to always have 300 feet of wood on hand in materials inventory. Compute Preston's direct materials purchases budget for July and August. Budgeted direct materials purchases July August
Preston, Incorporated, manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 330 units in July and 420 units in August. Each unit requires 11 feet of wood at a cost of $1.20 per foot. Preston wants to always have 300 feet of wood on hand in materials inventory. Compute Preston's direct materials purchases budget for July and August. Budgeted direct materials purchases July August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Preston, Incorporated, manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 330 units
in July and 420 units in August. Each unit requires 11 feet of wood at a cost of $1.20 per foot. Preston wants to always have 300 feet of
wood on hand in materials inventory.
Compute Preston's direct materials purchases budget for July and August.
Budgeted direct materials purchases
July
August
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