Question
Perine Company has 3784 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4300
Perine Company has 3784 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are4300and6050units, respectively.4pounds of raw materials are needed for each unit, and the estimated cost per pound is $7. Management desires an ending inventory equal to22% of next month's materials requirements.
Prepare the direct materials budget for January..(Round intermediate calculations and final answer to 0 decimal places, e.g. 5,275.)
United to be Produced:
Direct Materials/Unit:
Total lbs required for production:
ADD: Desired ending inventory:
total materials required:
Less; Beginning materials inventory
Cost per pound
Total Cost of direct materials purchased:
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