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vovangra [49]
3 years ago
5

Robo Inc.requires $70,000 of direct material for production and top management desires $3,000 in ending raw materials inventory.

The company has $2,000 in beginning raw materials inventory. What would Robo's budgeted purchases of direct materials be
Business
1 answer:
Alexxx [7]3 years ago
8 0

Answer:

Budgeted purchases = $71000

Explanation:

Below is the given values:

Direct material for the production = $70000

Ending raw material inventory = $3000

Beginning raw material = $2000

Budgeted purchases = Direct material for the production + Ending raw material - Beginning raw material

Budgeted purchases = 70000 + 3000 - 2000

Budgeted purchases = $71000

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