Tall Oak, Inc produces rulers from plastic resin. Tall Oak has estimated production and sales of...

Tall Oak, Inc produces rulers from plastic resin. Tall Oak has estimated production and sales of rulers in units for the next 2 months as:

May June

Estimated productiuon: 42,000 48,000

Estimated sales: 50,000 36,000

Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oaks wants to have 20% of the next months materials requirements on hand at the end of each month.

Prepare a direct materials purchases budget for the month of May.

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Expert Solution

milcah answered 2 years ago

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