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Zortek Corporation budgets production of 400 units in January and 200 units in February. Each...

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Accounting

Zortek Corporation budgets production of 400 units in January and 200 units in February. Each finished unit requires five pounds of material Z, which costs $2 per pound. Each months ending inventory of material Z should be 40% of the following months budgeted production. The January 1 inventory has 800 pounds of material Z. Prepare a direct materials budget for January.

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