Vaughn Company has 1,984 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 4,960 and 6,200 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $7. Management desires an ending inventory equal to 20% of next month's materials requirements. Prepare the direct materials budget for January. > : VAUGHN COMPANY Direct Materials Budget $ $

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Vaughn Company has 1,984 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and
February of 2022 are 4,960 and 6,200 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated
cost per pound is $7. Management desires an ending inventory equal to 20% of next month's materials requirements.
Prepare the direct materials budget for January.
VAUGHN COMPANY
Direct Materials Budget
$
$
LA
Transcribed Image Text:Vaughn Company has 1,984 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 4,960 and 6,200 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $7. Management desires an ending inventory equal to 20% of next month's materials requirements. Prepare the direct materials budget for January. VAUGHN COMPANY Direct Materials Budget $ $ LA
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