Yamomora Co. 1,860 units in January and 2,266 units in February. The company budgets $85 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account on January 1 is $49,900. Yamomora Co. desired the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is $53,300.Prepare Yamomora Co. direct materials budget for January and February. Yamomora Co.Direct Materials BudgetFor the Two Months Ended February 28Budgeted units to be producedDirect materials cost per unitDirect materials needed for productionPlus: Desired direct materials in ending inventoryTotal direct materials neededLess: Direct materials in beginning inventoryBudgeted purchases of direct materialsJanuary1,860✔85 ✓158, 100✓77,044 ✓235,144✔49,900✔185,244 ✓February2,266✔85✔192,610 ✓53,300245,910✔77,044✔168,866✓Total4,126✔85✔350,710130,344 X481,054 X126,944 X354,110✔

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Answered: Yamomora Co. 1,860 units in January and…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

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Yamomora Co. 1,860 units in January and 2,266 units in February. The company budgets $85 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account on January 1 is $49,900. Yamomora Co. desired the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is $53,300.

Prepare Yamomora Co. direct materials budget for January and February.

Yamomora Co.
Direct Materials Budget
For the Two Months Ended February 28
Budgeted units to be produced
Direct materials cost per unit
Direct materials needed for production
Plus: Desired direct materials in ending inventory
Total direct materials needed
Less: Direct materials in beginning inventory
Budgeted purchases of direct materials
January
1,860✔
85 ✓
158, 100✓
77,044 ✓
235,144✔
49,900✔
185,244 ✓
February
2,266✔
85✔
192,610 ✓
53,300
245,910✔
77,044✔
168,866✓
Total
4,126✔
85✔
350,710
130,344 X
481,054 X
126,944 X
354,110✔

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