Perine Company has 5,220 pounds of raw materials in its December 31,2.pdf
1. Perine Company has 5,220 pounds of raw materials in its December 31,2019 , ending inventory.
Required production for January and February of 2020 are 4,500 and 5,900 units, respectively. 4
pounds of raw materials are needed for each unit, and the estimated cost per pound is $7.
Management desires an ending inventory equal to 29% of next month's materials requirements.
Prepare the direct materials budget for January.