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How much direct materials needs to be purchased

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Reference no: EM132507241

Question 1: Given the following information from Rowdy Enterprises' direct materials budget, how much direct materials needs to be purchased?

Beginning materials inventory                $75,100
Ending materials inventory                      79,700
Materials needed for production               470,000
Purchases required $ 394,900 x

  • Purchases required are a function of inventory levels and the materials needed for production.

Reference no: EM132507241

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