11 QS 20-12(Algo) Manufacturing: Direct materials budget LO P1 Zortek Corporation budgets...

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Accounting

11
QS 20-12(Algo) Manufacturing: Direct materials budget LO P1
Zortek Corporation budgets production of 420 units in January and 300 units in February. Each finished unit requires four pounds of material Z, which costs $3 per pound. Each month's ending inventory of material Z should be 50% of the following month's budgeted production. The January 1 inventory has 840 pounds of material Z. Prepare a direct materials budget for January.
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