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Category > Accounting Posted 21 Apr 2017 My Price 7.00

Ajax Chemical Company

Ajax Chemical Company has estimated that production for the next 5 quarters will be:

 

Quarter 1, 2017                46,000 units

Quarter 2, 2017                42,000 units

Quarter 3, 2017                50,000 units

Quarter 4, 2017                39,000 units

Quarter 1, 2018                48,000 units

 

Finished units of production require 4 pounds of raw material per unit. The raw material cost is $4 per pound. There are 45,000 pounds of raw material on hand at the beginning of Quarter 1, 2017. Ajax desires to have 30 percent of next quarter’s material requirements on hand at the end of each quarter.

 

Required:

 

Prepare Quarterly direct materials purchase budget for Ajax Chemicals Company for 2017.

Answers

SuperTutor
(15)
Status NEW Posted 21 Apr 2017 01:04 AM My Price 7.00

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