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Cape Corporation Sells a Single Product ?
the Amount of Direct Material B Purchased During the Are

question 42

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Cape Corporation sells a single product.Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units.The quantities of direct materials expected to be used for each unit of finished product are given below. ?  Material A .50lb per unit @$0.60 per pound  Material B 1.00lb per unit @$1.70 per pound  Material C 1.20lb per unit @$1.00 per pound \begin{array}{lll}\text { Material A } & .50 \mathrm{lb} \text { per unit } & @ \$ 0.60 \text { per pound } \\\text { Material B } & 1.00 \mathrm{lb} \text { per unit } & @ \$ 1.70 \text { per pound } \\\text { Material C } & 1.20 \mathrm{lb} \text { per unit } & @ \$ 1.00 \text { per pound }\end{array} ?
The amount of direct material B purchased during the year is:

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Definitions:

Closeout Sale

A type of sale with significantly reduced prices, aimed at clearing out inventory.

Energy Efficiency

The goal or strategy of reducing the amount of energy required to provide products and services, enhancing operational performance while reducing energy use.

Risk Averse

A tendency to prefer certainty over uncertainty, often by avoiding situations that involve risk.

Economic Loss

A situation where the costs of a business, sector, or economy exceed its revenues, leading to a negative financial result.

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