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Perine Company has 3,784 pounds of raw materials in its December 31, 2016, ending inventory....

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Accounting

Perine Company has 3,784 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,300 and 6,050 units, respectively. 4 pounds of raw materials are needed for each unit, and the estimated cost per pound is $7. Management desires an ending inventory equal to 22% of next months materials requirements.

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Brief Exercise 23-4 Perine Company has 3,784 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,300 and 6,050 units, respectively. 4 pounds of raw materials are needed for each unit, and the estimated cost per pound is $7. Management desires an ending inventory equal to 22% of next month's materials requirements. Prepare the direct materials budget for January. (Round intermediate calculations and final answer to O decimal places, e.g. 5,275.) PERINE COMPANY Direct Materials Budget

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