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Larsen Company manufactures and sells a single product, widgets. Three pounds of clay are required to make one widget. Budgeted production of widgets for the subsequently few months follows:September 58,000 units
October 62,000 units
The company needs to maintain monthly ending inventories of clay equal to 20% of the subsequent month's production required. On August 31, 18,000 pounds of clay were on hand.
Instructions
Find how much clay should be purchased in September?
Target cost equals selling price required return of computer company required return to Timberland and use the Target Cost Worksheet to complete this assignment.
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