Reference no: EM132966585

Question - Yada expects to produce 1,850 units in January and 2,180 units in February. The company budgets five pounds per unit of direct materials at a cost of $55 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 5,700 pounds. Yada 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 4,000 pounds. Prepare Yada?'s direct materials budget for January and February.

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.