and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 5,000 pounds Yem desires the ending balance in Raw Materials Inventory to be 80% of the next month's direct materials needed for production. Desired ending balance for February is 4,000 pounds. Prepare Yem'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. Yem Company Direct Materials Budget Two Months Ended January 31 and February 28 Budgeted units to be produced Direct materials (pounds) per unit Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed January ELE 1,600 February 2,190 4,000 D

Managerial Accounting
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Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter9: Evaluating Variances From Standard Costs
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Yem expects to produce 1,600 units in January and 2,190 units in February. The company budgets three pounds per unit of direct materials at a cost of $30 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 5,000 pounds. Yem desires the ending balance in Raw Materials
Inventory to be 80% of the next month's direct materials needed for production. Desired ending balance for February is 4,000 pounds. Prepare Yem'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.
Yem Company
Direct Materials Budget
Two Months Ended January 31 and February 28
Budgeted units to be produced
Direct materials (pounds) per unit
Direct materials needed for production
Desired direct materials in ending inventory (pounds)
Plus:
Total direct materials needed
January
1,600
February
2,190
4,000
4
Transcribed Image Text:Yem expects to produce 1,600 units in January and 2,190 units in February. The company budgets three pounds per unit of direct materials at a cost of $30 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 5,000 pounds. Yem desires the ending balance in Raw Materials Inventory to be 80% of the next month's direct materials needed for production. Desired ending balance for February is 4,000 pounds. Prepare Yem'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. Yem Company Direct Materials Budget Two Months Ended January 31 and February 28 Budgeted units to be produced Direct materials (pounds) per unit Direct materials needed for production Desired direct materials in ending inventory (pounds) Plus: Total direct materials needed January 1,600 February 2,190 4,000 4
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