Beridze Manufacturing expects to produce 2,800 units in January and 3,600 units in February. Beridze...
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Accounting
Beridze Manufacturing expects to produce 2,800 units in January and 3,600 units in February. Beridze budgets $20 per unit for direct materials. The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $37,450. Beridze desires the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is $51,300. What is the cost of budgeted purchases of direct materials needed for January? A. $47,350 B. $56,000 C. $84,800 D. $40,950
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