Solved: Yards of cloth to purchase, Accounting Basics

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Yards of cloth to purchase

Rhett Co. manufactures and sells dress shirts. Each shirt requires 3 yard of cloth. Budget data is shown below:

Shirts: April May June
Budgeted sales: 26,000 28,000 32,000
Budgeted production 28,000 32,000 36,000
Desired ending inventory in yards of cloth 2,100 2,800 3,000

Problem: Calculate the number of yards of cloth that Rhett Co. plans to purchase in May.

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Accounting Basics: Yards of cloth to purchase

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Accounting Basics: Yards of cloth to purchase

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