Reference no: EM132956751

Yoder expects to produce 1,950 units in January and 2,190 units in February. The company budgets 2 pounds per unit of direct materials at a cost of $35 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account? (all direct? materials) on January 1 is 5,800 pounds. Yoder desires the ending balance in Raw Materials Inventory to be 80?% of the next? month's direct materials needed for production. Desired ending balance for February is 4,800 pounds. Prepare Yoder?'s direct materials budget for January and February.

Problem 1: Begin by preparing the direct materials budget for January and February through total direct materials needed line and then complete the budget by calculating the budgeted cost of direct materials purchases.