Sunland Company has 1,920 pounds of raw materials in its December 31, 2021, ending inventory. Required production for Januar and February of 2022 are 4,800 and 6,000 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $5. Management desires an ending inventory equal to 20% of next month's materials requirements. Prepare the direct materials budget for January.

Sunland Company has 1,920 pounds of raw materials in its December 31, 2021, ending inventory. Required production for Januar and February of 2022 are 4,800 and 6,000 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $5. Management desires an ending inventory equal to 20% of next month's materials requirements. Prepare the direct materials budget for January.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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