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Kathy likes to have half of the next months fabric needs in

Question - Kathy's budgeted production figures (in units) for sweatshirts for next quarter are shown below:

Kathy uses 1.2 yards of fabric per sweatshirt and pays $0.75 per yard. Kathy likes to have half of the next month's fabric needs in ending inventory. What is the expected cost of fabric to be purchased in August?

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Accounting Basics: Kathy likes to have half of the next months fabric needs in

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