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expects to produce 1,700 units in January and 2,084 units in February. The company budgets $...

expects to produce 1,700 units in January and 2,084 units in February. The company budgets $ 35 per unit for direct materials. 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 $47,500. Yordi desires the ending balance in Raw Materials Inventory to be 60% of the next​ month's direct materials needed for production. Desired ending balance for February is $48,500. Prepare Yordi​'s direct materials budget for January and February.

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Answer #1
Yordi
Material Budget
Particulars Calculations January February
Estimated Production (Units)       1,700       2,084
$ $
Material required 1700x35 & 2084x35     59,500     72,940
(+) Estimated Closing Inventory     43,764     48,500
1,03,264 1,21,440
(-) Opening Inventory 1700x35x60%     47,500     43,764
Material to be purchased     55,764     77,676
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