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ABC has 2,000 kilograms of direct material in its December 31, 2021 ending inventory. Required production for January 2022 and February 2022 is 5,000 and
ABC has 2,000 kilograms of direct material in its December 31, 2021 ending inventory. Required production for January 2022 and February 2022 is 5,000 and 6,000 units respectively. Two kilograms of direct materials are need for each unit produced and the cost per kilogram is $6. Management wants an ending inventory of direct materials equal to 25% of next month's direct materials requirements for production.
The dollar amount of direct materials that will be purchased in January 2022 is:
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