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Gomez Company has 1,950 kg of raw materials in its December 31, 2020, ending inventory. Required production for January and February is 5,180 and 6,140
Gomez Company has 1,950 kg of raw materials in its December 31, 2020, ending inventory. Required production for January and February is 5,180 and 6,140 units, respectively.
2 kilograms of raw materials are needed for each unit, and the estimated cost per kilogram is $6. Management wants an ending inventory equal to 25% of next month's materials requirements.Calculate the Total Cost of Direct Material Purchases:
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