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Determine the direct materials purchases budget for the year

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Problem - MyLife Chronicles Inc. budgeted production of 238,900 diaries for the year. Paper is required to produce a diary. Assume five square yards of paper are required for each diary. The estimated January 1 paper inventory is 32,400 square yards. The desired December 31 paper inventory is 30,800 square yards. If paper costs $0.30 per square yard, determine the direct materials purchases budget for the year.

Reference no: EM132763904

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