Dean Manufacturing expects to produce 12,900 units in January and 14,200 units in February. The company budgets $10 per yard for direct materials and each unit has been budgeted 1 yard of material. The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 3,500 yards. The company desires the ending balance in Raw Materials Inventory to be 16% of the next month's direct materials needed for production. What is the cost of the budgeted purchases of direct materials needed for January? Question content area bottom Part 1 A. $151,720 B. $22,720 C. $129,000 D.$ 116, 720

Dean Manufacturing expects to produce 12,900 units in January and 14,200 units in February. The company budgets $10 per yard for direct materials and each unit has been budgeted 1 yard of material. The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 3,500 yards. The company desires the ending balance in Raw Materials Inventory to be 16% of the next month's direct materials needed for production. What is the cost of the budgeted purchases of direct materials needed for January? Question content area bottom Part 1 A. $151,720 B. $22,720 C. $129,000 D.$ 116, 720

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3CMA: Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand...

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Question content area bottom

Part 1

$151,720

$22,720

$129,000

D.$ 116, 720

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