Prepare a direct materials budget for the fabric

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Question: Two yards of fabric are required for each blouse produced. The cost of the fabric is $4 per yard. Budgeted production of blouses is given below for the fourth quarter and the first month of following quarter. Oct 18,000 Nov 16,000 Dec 15,000 Jan 12,000 To prevent andy stock outs for fabric the company manintains and ending inventory each month eaqual to 10% of the next months production needs. The beginning inventoy of the fabric in october will be 3,600 yards. Prepare a direct materials budget for the fabric by month and in total for the fourth quarter. Be sure to include both quanitity purchased and its cost for month.

Reference no: EM131765886

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