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    Budget Direct Corporations

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    The Jung Corporation's budget calls for the following production:

    Quarter 1 45,000 units
    Quarter 2 38,000 units
    Quarter 3 34,000 units
    Quarter 4 48,000 units

    Each unit of production requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30 percent of that quarter's direct material requirements. Compute budgeted direct materials purchases for the third quarter.

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    Solution Summary

    Budget direct corporations are examined.