Preparing Raw Materials Purchases Budget
CubbyHole, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 310 units in July and 400 units in August. Each unit requires 10 feet of wood at a cost of $1.20 per foot. CubbyHole wants to always have 300 feet of wood on hand in materials inventory. Prepare CubbyHole’s raw materials purchases budget for July and August.
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