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Bell expects to produce 1,800 units in January and 2,155 units in February. The company budgets 3 pounds per unit of direct materials at a
Bell expects to produce 1,800 units in January and 2,155 units in February. The company budgets 3 pounds per unit of direct materials at a cost of 10 per pound Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (All direct materials) on Januarytis 4,950 pounds Bell desires the ending balance in Raw Materials inventory to be 20% of the next month's direct materials needed for production Desired ending balance for February is 4,860 pounds Prepare Bells direct materials budget for January and February Begin by preparing the direct materials budget for January and February through total direct materials needed ine and then complete the budget by calculating the budgeted cost of direct materials purchases Bell Company Direct Materials Budget Two Months Ended January 31 and February 28 January February Direct materials (pounds) per unit Direct materials needed for production Plus Total direct materials needed
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