Perine Company has 3,828 pounds of raw materials in its December 31, 2016, endin
ID: 2498462 • Letter: P
Question
Perine Company has 3,828 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,350 and 5,800 units, respectively. 4 pounds of raw materials are needed for each unit, and the estimated cost per pound is $9. 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 0 decimal places, e.g. 5,275.)
PERINE COMPANY
Direct Materials Budget
For the Quarter Ending January 31, 2017For the Month Ending January 31, 2017January 31, 2017
Cost Per PoundTotal Required Direct Labor HoursDesired Ending InventoryDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostBeginning Materials InventoryTotal Materials RequiredTotal Pounds Required for ProductionUnits to be Produced
Total Required Direct Labor HoursTotal Direct Labor CostTotal Materials RequiredDirect Materials PurchasesUnits to be ProducedTotal Pounds Required for ProductionDirect Labor Cost Per HourBeginning Materials InventoryDesired Ending InventoryCost Per PoundDirect Labor Time Per UnitDirect Materials Per UnitTotal Cost of Direct Materials Purchases
Units to be ProducedTotal Materials RequiredDesired Ending InventoryTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesCost Per PoundTotal Pounds Required for ProductionDirect Labor Time Per UnitDirect Labor Cost Per HourBeginning Materials InventoryDirect Materials PurchasesDirect Materials Per UnitTotal Direct Labor Cost
AddLess: Direct Materials Per UnitCost Per PoundTotal Cost of Direct Materials PurchasesTotal Direct Labor CostDesired Ending InventoryUnits to be ProducedDirect Labor Time Per UnitDirect Labor Cost Per HourTotal Materials RequiredTotal Pounds Required for ProductionDirect Materials PurchasesTotal Required Direct Labor HoursBeginning Materials Inventory
Beginning Materials InventoryCost Per PoundTotal Direct Labor CostDirect Materials PurchasesDesired Ending InventoryDirect Materials Per UnitDirect Labor Cost Per HourDirect Labor Time Per UnitTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
AddLess: Total Direct Labor CostCost Per PoundDirect Materials PurchasesBeginning Materials InventoryDesired Ending InventoryTotal Cost of Direct Materials PurchasesDirect Labor Time Per UnitDirect Materials Per UnitTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursDirect Labor Cost Per HourUnits to be Produced
Cost Per PoundDirect Labor Time Per UnitBeginning Materials InventoryDesired Ending InventoryDirect Labor Cost Per HourUnits to be ProducedDirect Materials Per UnitDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor Hours
Cost Per PoundDesired Ending InventoryDirect Labor Cost Per HourBeginning Materials InventoryDirect Labor Time Per UnitDirect Materials PurchasesTotal Pounds Required for ProductionUnits to be ProducedDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursTotal Direct Labor CostTotal Materials Required
$
Direct Labor Time Per UnitUnits to be ProducedBeginning Materials InventoryTotal Required Direct Labor HoursDirect Materials Per UnitDirect Labor Cost Per HourTotal Direct Labor CostTotal Pounds Required for ProductionCost Per PoundDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Materials RequiredDesired Ending Inventory
$
Explanation / Answer
Statement showing Direct Materials Budget Particulars January February Required Production 4,350.00 5,800.00 Pounds required for production@4 17,400.00 23,200.00 Opening raw Materials in pounds 3,828.00 Ending raw materials = 22%*23,200 5,104.00 Purchases = Production+Ending - Opening = 17,400+5104-3828 18,676.00 Cost per pound 9.00 Total Cost 168,084.00