Answer:
Direct material budget:
Sales= $49,200
Ending inventory= $13,440
Beginning inventory= $(9,840)
Total= $52,800
Explanation:
Giving the following information:
Beginning inventory= 1,640 pounds of raw materials.
Required production:
January= 4,100 units
February= 5,600 units
2 pounds of raw materials are needed for each unit
The estimated cost per pound is $6.
Management desires an ending inventory equal to 20% of next month’s materials requirements.
Direct material budget:
Sales= (4,100*2)*$6= $49,200
Ending inventory= [(5,600*2)*0.20]*$6= $13,440
Beginning inventory= (1,640*6)= (9,840)
Total= $52,800
