Perine Company has 2,016 pounds of raw materials in its December 31, 2019, ending inventory....
80.2K
Verified Solution
Link Copied!
Question
Accounting
Perine Company has 2,016 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,200 and 5,800 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $8. Management desires an ending inventory equal to 24% of next month's materials requirements. Prepare the direct materials budget for January. PERINE COMPANY Direct Materials Budget For the Month Ending January 31, 2020 X Units to be Produced 4600 Direct Materials Per Unit 2 X Total Pounds Required for Production x Add v Desired Ending Inventory X x Direct Materials Purchases X Less Beginning Materials Inventory X Direct Materials Purchases X Cost Per Pound Total Cost of Direct Materials Purchases V $
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
