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Determine the direct materials purchases budget

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Problem - Direct materials purchases budget - MyLife Publishers Inc. budgeted production of 159,000 diaries in 2012. Paper is required to produce a diary. Assume eight square yards of paper are required for each diary. The estimated January 1, 2012, paper inventory is 30,500 square yards. The desired December 31, 2012, paper inventory is 27,000 square yards. If paper costs $0.70 per square yard, determine the direct materials purchases budget for 2012.

Reference no: EM132686010

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