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XYZ HAS 2,000 POUNDS OF RAW MATERIALS IN ITS DECEMBER 31, 2019 ENDING INVENTORY. REQUIRED PRODUCTION FOR JANUARY AND FEBRUARY OF 2020 ARE 4,000 AND
XYZ HAS 2,000 POUNDS OF RAW MATERIALS IN ITS DECEMBER 31, 2019 ENDING INVENTORY. REQUIRED PRODUCTION FOR JANUARY AND FEBRUARY OF 2020 ARE 4,000 AND 5,000 UNITS RESPECTIVELY. TWO POUNDS OF MATERIAL ARE NEEDED FOR EACH UNIT AND THE ESTIMATED COST PER POUND IS $4. MANAGEMENT DESIRES AN ENDING INVENTORY EQUAL TO 25% OF THE NEXT MONTHS MATERIAL REQUIREMENTS. WHAT IS THE BUDGETED COST OF DIRECT MATERIALS FOR JANUARY? $32,000 CANNOT BE DETERMINED $8,500 $34,000
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