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AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to
AMZ Corporation produces a single product that requires three yards of direct materials to produce each unit. AMZ has the following budgeted information related to this product for the next five months: units to cost of direct materials be produced to be purchased August 56,300 $538,530 September ? $340,620 October 20,800 $798,150 November 67,100 ? December 35,200 ? AMZ wants to maintain monthly ending inventories of direct materials equal to 70% of the next month's production needs. The cost of direct materials is $5 per yard. Calculate the budgeted direct materials inventory account balance at November 30.
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