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Shamrock Company has 2,090 kg of raw materials in its December 31, 2022, ending inventory. Required production for January and February is 5,080 and 5,920 units, respectively. 2 kilograms of raw materials are needed for each unit, and the estimated cost per kilogram is $6. Management wants an ending inventory equal to 25% of next month's materials requirements. Prepare the direct materials budget for January. SHAMROCK COMPANY Direct Materials Budget For the Month Ending January 31, 2023 Units to be produced 5,080 2 Direct materials per unit Total kilograms required for production 10,160 Add Desired ending inventory Total materials required 10,160 Less Beginning materials inventory 2,090 Direct materials purchases 7,970 Cost per kilogram.
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