Perine Company has 2,392 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,600 and 6,000 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $9. Management desires an ending inventory equal to 26% of next month's materials requirements. Prepare the direct materials budget for January. PERINE COMPANY Direct Materials Budget

Name: perine company has 2392 pounds of raw materials in its december 31 2019 ending inventory required production for january and february of 2020 are 4600 and 6000 units respectively 2 pounds of 31523
Uploaded: 2023-11-14T17:26:13-08:00
Duration: 5 min
Channel: Akash M
Description: perine company has 2392 pounds of raw materials in its december 31 2019 ending inventory required production for january and february of 2020 are 4600 and 6000 units respectively 2 pounds of 31523

          Perine Company has 2,392 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,600 and 6,000 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $9. Management desires an ending inventory equal to 26% of next month's materials requirements.
Prepare the direct materials budget for January.
PERINE COMPANY
Direct Materials Budget

perine company has 2392 pounds of raw materials in its december 31 2019 ending inventory required production for january and february of 2020 are 4600 and 6000 units respectively 2 pounds of 31523

Added by Craig L.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

11/14/2023

Step 1

Required production for January is 4,600 units. Each unit requires 2 pounds of raw materials. Therefore, the total materials needed for production in January is 4,600 units * 2 pounds/unit = 9,200 pounds. Show more…

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Perine Company has 2,392 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,600 and 6,000 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $9. Management desires an ending inventory equal to 26% of next month's materials requirements. Prepare the direct materials budget for January. PERINE COMPANY Direct Materials Budget