FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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ABC Ltd. is planning on producing 12,000 units in March, and 14,400 in April. Each
product requires a 0.5kg of material X, which costs $2.20 per kg. The company's
policy is to have enough material on hand to equal 10% of the next month's
production needs. What is the budgeted cost of purchases for March?
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Transcribed Image Text:ABC Ltd. is planning on producing 12,000 units in March, and 14,400 in April. Each product requires a 0.5kg of material X, which costs $2.20 per kg. The company's policy is to have enough material on hand to equal 10% of the next month's production needs. What is the budgeted cost of purchases for March?
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