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Determine the direct materials purchases budget

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Direct Materials Purchases Budget

Daybook Inc. budgeted production of 403,500 personal journals in 20Y6. Paper is required to produce a journal. Assume six square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 40,400 square yards. The desired December 31, 20Y6, paper inventory is 38,900 square yards.

Question 1: If paper costs $0.40 per square yard, determine the direct materials purchases budget for 20Y6.

Reference no: EM132610631

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