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XYZ Company makes and sells a single product. Each finished unit requires two pounds of direct materials. The budgeted units to be produced over the
XYZ Company makes and sells a single product. Each finished unit requires two pounds of direct materials. The budgeted units to be produced over the next four months is as follows: Budgeted Units to be Produced January 18,000 units February 19,000 units March 16,000 units April 25,000 units The company wants to maintain monthly ending inventories of direct materials equal to 20% of the following month's production needs. The cost of the direct materials is $2.50 per pound. Calculate the total cost of direct materials budgeted to be purchased in February. Do not use decimals in your answer.
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