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Sarasota, Inc. manufactures afghans. The budgeted units to be produced and sold are as follows:...

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Accounting

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Sarasota, Inc. manufactures afghans. The budgeted units to be produced and sold are as follows: It takes 16 yards of yarn to produce an afghan. The company's policy is to maintain yarn at the end of each month equal to 5% month's production needs and to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated production needs. The cost of yarn is $0.30 a yard. At August 1,2,760 yards of yarn were on hand. Compute the budgeted cost of direct materials purchases for August. Budgeted cost of direct materials purchases for August

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