Yada expects to produce 1,700 units in January and 2,200 units in February. The company...
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Accounting
Yada expects to produce 1,700 units in January and 2,200 units in February. The company budgets four pounds per unit of direct materials at a cost of $50 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 5,400 pounds. Yada 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 3,900 pounds. Prepare Yada'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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