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Gomez Company has 1,950 kg of raw materials in its December 31, 2020, ending inventory. Required production for January and February is 5,180 and 6,140 units, respectively.
Question 1: 2 kilograms of raw materials are needed for each unit, and the estimated cost per kilogram is $6. Management wants an ending inventory equal to 25% of next month's materials requirements. Calculate the Total Cost of Direct Material Purchases:
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