Yamomora Co. 1,860 units in January and 2,266 units in February. The company budgets $85 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account on January 1 is $49,900. Yamomora Co. desired the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is $53,300. Prepare Yamomora Co. direct materials budget for January and February.
Yamomora Co. 1,860 units in January and 2,266 units in February. The company budgets $85 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account on January 1 is $49,900. Yamomora Co. desired the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is $53,300. Prepare Yamomora Co. direct materials budget for January and February.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Yamomora Co. 1,860 units in January and 2,266 units in February. The company budgets $85 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account on January 1 is $49,900. Yamomora Co. desired the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is $53,300.
Prepare Yamomora Co. direct materials budget for January and February.
Transcribed Image Text:Yamomora Co.
Direct Materials Budget
For the Two Months Ended February 28
Budgeted units to be produced
Direct materials cost per unit
Direct materials needed for production
Plus: Desired direct materials in ending inventory
Total direct materials needed
Less: Direct materials in beginning inventory
Budgeted purchases of direct materials
January
1,860✔
85 ✓
158, 100✓
77,044 ✓
235,144✔
49,900✔
185,244 ✓
February
2,266✔
85✔
192,610 ✓
53,300
245,910✔
77,044✔
168,866✓
Total
4,126✔
85✔
350,710
130,344 X
481,054 X
126,944 X
354,110✔
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