LifeTyme Publishers Inc. budgeted production of 191,900 diaries in 2014. Paper is required to produce...
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Accounting
LifeTyme Publishers Inc. budgeted production of 191,900 diaries in 2014. Paper is required to produce a diary. Assume seven square yards of paper are required for each diary. The estimated January 1, 2014, paper inventory is 29,100 square yards. The desired December 31, 2014, paper inventory is 32,900 square yards. If paper costs $0.80 per square yard, determine the direct materials purchases budget for 2014.
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