Perine Company has 3,780 pounds of raw materials in its December 31, 2013, endin
ID: 2491927 • Letter: P
Question
Perine Company has 3,780 pounds of raw materials in its December 31, 2013, ending inventory. Required production for January and February of 2014 are 4,200 and 5,650 units, respectively. 3 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 30% of next month’s material requirement.
Prepare the direct materials budget for January.
PERINE COMPANY
Direct Materials Budget
For the Month Ending January 31, 2014
PERINE COMPANY
Direct Materials Budget
For the Month Ending January 31, 2014
Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
AddLess
:Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
AddLess
:Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
$Beginning Materials InventoryCost Per PoundDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
$Explanation / Answer
Perine Company Direct Materials Budget for January Details Jan Feb Production in Units 4,200 5,650 Raw Materials needed per unit(lbs) 3 3 Materials needed for production in lbs 12,600 16,950 Add : Desired Ending Inventory lbs 5,085 Less : Beginning inventory raw materials lbs 3,780 Raw Materials Purchase Requirement for Jan lbs 13,905 Raw Materials cost per lb = $ 6.00 Direct Materials purchase cost for Jan $ 83,430.0 So Direct Materials Budget for Jan is $83,430