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How to determine Raw material cost for May’s production Total cost of May’s raw materials

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How to determineRaw material cost for May’s productionTotal cost of May’s raw materials

purchases

Given

Aco makes units that requires 2 pounds of material at $2 per pound. Aco plans that 400 and 600 units will be built in May and June. Aco keeps material on hand at 10% of next month’s production needs

 
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