Waterway Company has 2,040 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 4,080 and 5,100 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $ 6. Management desires an ending inventory equal to 25% of next month's materials requirements. Prepare the direct materials budget for January. WATERWAY COMPANY Direct Materials Budget

Waterway Company has 2,040 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 4,080 and 5,100 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $ 6. Management desires an ending inventory equal to 25% of next month's materials requirements. Prepare the direct materials budget for January. WATERWAY COMPANY Direct Materials Budget

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 4EA: One Device makes universal remote controls and expects to sell 500 units in January, 800 in...

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