Yamomora Co. 1,940 units in January and 2,149 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 $49,100. 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 $53,200. Prepare Yamomora Co. direct materials budget for January and February. Yamomora Co.Direct Materials BudgetFor the Two Months Ended February 28 January February Total 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 Single lineBudgeted purchases of direct materials
Yamomora Co. 1,940 units in January and 2,149 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 $49,100. 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 $53,200. Prepare Yamomora Co. direct materials budget for January and February. Yamomora Co.Direct Materials BudgetFor the Two Months Ended February 28 January February Total 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 Single lineBudgeted purchases of direct materials
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Yamomora Co. 1,940 units in January and 2,149 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 $49,100. 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 $53,200.
Prepare Yamomora Co. direct materials budget for January and February.
Yamomora Co.Direct Materials BudgetFor the Two Months Ended February 28
Prepare Yamomora Co. direct materials budget for January and February.
Yamomora Co.Direct Materials BudgetFor the Two Months Ended February 28
| January | February | Total | |
|---|---|---|---|
| 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 | |||
| Single lineBudgeted purchases of direct materials |
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