BE9.4

Perine Company has 4,515 pounds of raw materials in its December 31 2019, ending inventory. Required production for January and February of 2020 are 4,300 and 5,900 units, respectively. 5 pounds of raw materials are needed for each unit and the estimated cost per pound is$7. Management desires an ending inventory equal to 21% of next month's materials requirements. Prepare the direct materials budget for January PERINE COMPANY Direct Materials Budget