Question

Weygandt, Managerial Accounting, Be MANAGEMENT USES OF ACCTG (ACC 220 -PERS SSAGE HY INSTRUCTOR STANDARD VIEW PRINTER VERSION BACK NE Brief Exerci 4 Perine Company has 2,970 pounds of raw materials in December 31, 2019, ending ventory R e production for anuary and February of 2020 w 4,500 and 5,700 units, respectively. 3 pounds of raw materials are needed for each unit, and the estimated cost per pound is $8. Management desires an ending inventory equal to 22% of next month's materials requirements Prepare the direct material budget for January PERINE COMPANY Direct Materials Budget For the Month Ending January 31, 2020 Direct Materials Per Unit Add Desired Ending Inventory Derect Materials Parchases Total Cost of Direct Materials Purchases al Chick if you would be to Show Work for this question Ouen Show Work

Answer 1

Direct material budget
Unit to be produced			4500
Direct material per unit			3
total pounds required for production			13500
add: desired ending inventory			3762
total material required			17262
less: beginning material inventory			2970
Direct material purchases			14292
cost per pound			8
total cost of direct material purchases			114336
desired ending inventory (5700*3*22%)			3762

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