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Perine company has 3214 pounds of raw materials in its

Question - Perine Company has 3,214 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,120 and 5,670 units, respectively. 3 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.

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Accounting Basics: Perine company has 3214 pounds of raw materials in its

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