BE20-4 Perine Company has 1,600 pounds of raw materials in its


Question Description:

33

Perine Company has 1,600 pounds of raw materials in its December 31, 2012, ending inventory. Required production for January and February of 2013 are 4,000 and 5,500 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 20% of next month’s materials requirements. Prepare the direct materials budget for January.

Answer

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