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Business, 06.05.2020 07:20 Quantajah

The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 2,500 yards of Material K were on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year. The total needs (i. e., production requirements plus desired ending inventory) of Material K for November are:

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