AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to this product for the next five months: August September October November December units to be produced 29,900 cost of direct materials to be purchased $359,985 $493,515 $319, 200 37,800 14,200 26,300 ? AMZ wants to maintain monthly ending inventories of direct materials equal to 70% of the next month's production needs. The cost of direct materials is $5 per yard. Calculate the number of units budgeted to be produced in September.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter19: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...
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AMZ Corporation produces a single product that requires
three yards of direct materials to produce each unit.
AMZ has the following budgeted information related to
this product for the next five months:
August
September
October
November
December
units to
be produced
29,900
cost of direct materials
to be purchased
$359,985
$493,515
$319, 200
37,800
14,200
26,300
AMZ wants to maintain monthly ending inventories of
direct materials equal to 70% of the next month's
production needs. The cost of direct materials is
$5 per yard.
Calculate the number of units budgeted to be produced
in September.
Transcribed Image Text:AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to this product for the next five months: August September October November December units to be produced 29,900 cost of direct materials to be purchased $359,985 $493,515 $319, 200 37,800 14,200 26,300 AMZ wants to maintain monthly ending inventories of direct materials equal to 70% of the next month's production needs. The cost of direct materials is $5 per yard. Calculate the number of units budgeted to be produced in September.
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