Beridze Manufacturing expects to produce 2,300 units in January and 3,900 units in February. Beridze budgets $50 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 $38,750. Beridze desires the ending balance in Raw Materials Inventory to be 20% of the next month's direct materials needed for production. Desired ending balance for February is $51,100. What is the cost of budgeted purchases of direct materials needed for January? OA. $154,000 OB. $115,000 OC. $99,250 OD. $115,250 C

Beridze Manufacturing expects to produce 2,300 units in January and 3,900 units in February. Beridze budgets $50 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 $38,750. Beridze desires the ending balance in Raw Materials Inventory to be 20% of the next month's direct materials needed for production. Desired ending balance for February is $51,100. What is the cost of budgeted purchases of direct materials needed for January? OA. $154,000 OB. $115,000 OC. $99,250 OD. $115,250 C

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3CMA: Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand...

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