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Business, 30.03.2020 20:47 brockmorrison3468

Zortek Corp. budgets production of 470 units in January and 210 units in February. Each finished unit requires six pounds of raw material Z, which costs $2 per pound. Each month’s ending inventory of raw materials should be 30% of the following month’s budgeted production. The January 1 raw materials inventory has 120 pounds of Z. Prepare a direct materials budget for January.

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