Question

YoskoYosko expects to produce 1,500 units in January and 2,140 units in February. The company budgets 33 pounds per unit of direct materials at a cost of $20 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account​ (all direct​ materials) on January 1 is 5,500 pounds. Yosko desires 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 4,500 pounds. Prepare Yosko​'s direct materials budget for January and February. Begin by preparing the direct materials budget for January and February through total direct materials needed line and then complete the budget by calculating the budgeted cost of direct materials purchases.

Yosko Company
Direct Materials Budget
Two Months Ended January 31 and February 28
		January	February
Budgeted units to be produced		1,500	2,140
Direct materials (pounds) per unit		3	3
Direct materials needed for production		4,500	6,420
Plus:	Desired direct materials in ending inventory (pounds)	2,568	4,500
Total direct materials needed		7,068	10,920

Less:
Budgeted purchases of direct materials
Direct materials cost per pound
Budgeted cost of direct materials purchases

Answer 1