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Question - Assume Production of finished goods from the production budget for quarters one and two are 2000 and 3000 finished goods respectively. Each finished good requires 2 pounds of materials. The firm has a materials desired ending inventory for each quarter equal to 30% of next periods material need per the production budget. The materials on hand at the beginning of quarter one is 3000 pounds. Prepare a materials purchase budget in pounds for the first quarter.
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