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Yogi expects to produce 1,900 units in January and 2,130 units in February. The company budgets five pounds per unit of direct materials at a
Yogi expects to produce 1,900 units in January and 2,130 units in February. The company budgets five pounds per unit of direct materials at a cost of $40 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 5,600 pounds. Yogi desires the ending balance in Raw Materials Inventory to be 80% of the next month's direct materials needed for production. Desired ending balance for February is 4,000 pounds. Prepare Yogi's direct materials budget for January and February. Begin by preparing the direct materials budget for January and February through total direct materials needed line and then complete the budget by calculating the budgeted cost of direct materials purchases
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