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Below are the sales and production budget for Mendez Company: Month Budgeted Sales in units Budgeted Production in units February 8,000 7,400 March 9,000 8,800

Below are the sales and production budget for Mendez Company:

Month Budgeted Sales in units Budgeted Production in units
February 8,000 7,400
March 9,000 8,800
April 9,200 9,500

Make a direct materials budget for March. How much, in total dollars, is the company's direct materials budget for March?

  • Every unit requires 3 pounds of material. The materials are purchased at $19 per pound.
  • Management's policy is to maintain ending direct materials on hand each month at a level equal to 5% of the following month's production budget.

PS: Just enter the number. No dollar signs or commas.

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