Could someone help me figure this out? Perine Company has 2,996 pounds of raw ma

Question

Could someone help me figure this out?

Perine Company has 2,996 pounds of raw materias n its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,540 and 5,870 units, respectively. 3 pounds of raw materials are needed for each unit, and the estimated cost per pound is s6. Management desires an ending inventory equal to 22% of next month's materials requirements. Prepare the direct materials budget tor January. (Round intermediate calculations and tinal answer to decimal places, e.g. 5,275.) PERINF COMPANY Direct Materials Budget Units to be Prodced Direct Materials Per Unit Total Pounds Required for Production ada Desired Lnding Inventory otal Materisls Required Beginning Materisls Inventory Direct Materials Purthses Total Cost of Direct Materials Purchass

Explanation / Answer

Direct Material Budget For the Month Ending January 31, 2017 Units to be produced 4540 Direct Materials needed per unit 3 Total pounds needed for production 13620 Add: : Desired ending direct materials 3874 =5870*3*22% Total materials required 17494 Less: Beginning direct material 2996 Direct Materials purchased 14498 Cost per pound 6 Total cost of direct materials purchases 86988

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