Answer Happy

Yasmin expects to produce 1,700 units in January and 2,110 units in February. The company budgets three pounds per unit of direct materials at a cost of $5 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 5,500 pounds. Yasmin 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 4,800 pounds. Prepare Yasmin'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. Yasmin Company Direct Materials Budget Two Months Ended January 31 and February 28 Budgeted units to be sold Direct materials (pounds) per unit Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed January C February