Homework Answers
Answer
| Unit to be produced | 4200 |
| Direct material needed per unit | *4 |
| Total pounds needed for production | 16800 |
| Pound of raw material is needed for January ending production (5800*29%*4) | 6728 |
| Raw material beginning | (4872) |
| Pound of raw material needs to be purchased in January | 18656 |
| Cost of raw material purchased in January (18656*7) | 130592 |
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Perine Company has 2,376 pounds
of raw materials in its December 31, 2016, ending inventory.
Required production for January and February of 2017 are 4,570 and
6,030 units, respectively. 2 pounds of raw materials are needed for
each unit, and the estimated cost per pound is $9. Management
desires an ending inventory equal to 26% of next month’s materials
requirements. Prepare the direct materials budget for January.
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Perine Company has 2,376 pounds
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Required production for January and February of 2017 are 4,570 and
6,030 units, respectively. 2 pounds of raw materials are needed for
each unit, and the estimated cost per pound is $9. Management
desires an ending inventory equal to 26% of next month’s materials
requirements. Prepare the direct materials budget for January.
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