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I’m working on a Accounting question and need guidance to help me study.
Whistle manufactures referee whistles. At the end of February,
Whistle has 2,000 pounds of steel for whistles inventory. Whistle expects
to produce and sell 50,000 whistles in March. Each whistle requires a
standard quality of .2 lbs of steel. Whistle wants to have 5,000 pounds
of steel in inventory at the end of March. Whistle has no whistles in
beginning finished goods inventory and doesn’t plan to have any whistles in
ending finished goods inventory. Each pound of steel has a standard cost
of $7. Prepare Whistle’s purchase budget for steel in March. How
much does Whistle expect to spend on steel in March?
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