Perine Company has 4,050 pounds of raw materials in its December 31, 2013, ending inventory. Required production for January and February of 2014 are 4,500 and 5,880 units, respectively. 3 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 30% of next month's material requirement. Prepare the direct materials budget for January. Units to be Produced Direct Materials Per Unit Add PERINE COMPANY Direct Materials Budget For the Month Ending January 31, 2014 O Total Pounds Required for Production + Less Desired Ending Inventory Total Materials Required Beginning Materials Inventory Direct Materials Purchases Cost Per Pound + Total Cost of Direct Materials Purchases $ 4500 3 13500 1764 15264 2025 13239 79434

Perine Company has 4,050 pounds of raw materials in its December 31, 2013, ending inventory. Required production for January and February of 2014 are 4,500 and 5,880 units, respectively. 3 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 30% of next month's material requirement. Prepare the direct materials budget for January. Units to be Produced Direct Materials Per Unit Add PERINE COMPANY Direct Materials Budget For the Month Ending January 31, 2014 O Total Pounds Required for Production + Less Desired Ending Inventory Total Materials Required Beginning Materials Inventory Direct Materials Purchases Cost Per Pound + Total Cost of Direct Materials Purchases $ 4500 3 13500 1764 15264 2025 13239 79434

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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