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Fuqua Company’s sales budget projects unit sales ofpart 198Z of 12,800 units in January, 15,300 units in February, and17,500 units in March. Each unit of part 198Z requires 3 pounds ofmaterials, which cost $4 per pound. Fuqua Company desires itsending raw materials inventory to equal 40% of the next month’sproduction requirements, and its ending finished goods inventory toequal 20% of the next month’s expected unit sales. These goals weremet at December 31, 2013.

A) Prepare a production budget for January andFebruary 2014.

B) Prepare a direct materials budget for January2014

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Trinidad Tremblay
Trinidad TremblayLv2
28 Sep 2019

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