Question

Brief Exercise 21-4 Your answer is partially correct. Try again. Perine Company has 2,983 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,520 and 5,720 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 materials budget for January. (Round intermediate calculations and final answer to 0 decimal places, e.g. 5,275.) PERINE COMPANY Direct Materials Budget 2 Units to be produced Total Materials Required T Total Pounds Required for Production A T Add Add a desired Ending Inventory Total Materials Required Less :). Beginning Materials Inventory Total Materials Required Beginning Materials Inventory

Answer 1

23 and Pevine company to o 9 0 9220 Direct material Budget bleine for the month ended january 31, 2017 Details units to be produced (03- 920 41520 Direct material needed per unit 4220 esto a BA Total pounds needed for production. 13,560 Add: Desired ending direct materials (pounds) (a) 3775 (51720x 3 x 2272 (voix Total materials required 17,335 raw materials (2983) Direct materials purchased 14,352 cost per pound $8 Total cost of direct material purchases $114,816 cers:- Beginning . 224