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Picture Pretty manufactures picture frames. Sales for August are expected to be 15,000 units of various sizes. Historically, the average frame requires 4.5 feet of framing, 1.5 square feet of glass, and 2.5 square feet of backing. Beginning inventory includes 1,750 feet of framing, 600 square feet of glass, and 800 square feet of backing. Prices are $0.40 per foot of framing, $5.75 per square foot of glass, and $2.50 per square foot of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the month acquired.

problem 1: Determine the quantity of framing, glass, and backing that is to be purchased during August.

problem 2: Determine the total costs of direct materials for August purchases.

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947068

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