Question

January and February of 2017 are 4,350 and 6,030 units, respectively. 3 pounds of raw materials are needed for each unit, and 185 3,915 pounds of raw materials in its December 31, 2016, ending inventory. Required production for the estimated cost per pound is $9. Management desires an ending Inventory equal to 30% of next month's materials requirements. Brief Exercise 23 Bref Exercise 22- Brief Exercise 23-6 Briet Exercise 23:2 Bnet Exercise 23- Bo Exero.232 Do IL REVI23.1 Do ft Rev234 Prepare the direct materials budget for January. (Round intermediate calculations and final answer to o decimal places, e.g. 5,275.) PERINE COMPANY Direct Materials Budget Review Score Review Results by Study Obiective Total Materials Required Total Direct Labor Cost Units to be produced Total Pounds Required for Production Total Required Direct Labor Hours Direct Materials Purchases Total cost of Direct Materials Purchases Desired Ending Inventory Beginning Materials inventory Cost Per Pound Direct Materials per Unit Direct Labor Time Per Unit Direct Labor Cost Per Hour learn while you earn points based on the point potential Policy set by your • Previous

Answer 1

Answer:

Units to be produced in February = 6030 units

Direct Material required Per Unit = 3

Total Pounds Required for Production in February = 6030 * 3 = 18090

Desired Ending Inventory in January = 30% * 18090 =5427

4,350 PERINE COMPANY Direct Materials Budget For the Ending January, 31, 2017 Units To be produced Direct Material Per Unit Total Pounds Required for Production Add Desired Ending Inventory Total Materials Required Less Beginning Material Inventory Direct Material Purchases Cost Per Pound Total Cost of Direct Material Purchases 13,050 5,427 18,477 3,915 14,562 131,058