Beridze Manufacturing Expects to Produce 2900 Units in January and 3600

Beridze Manufacturing expects to produce 2900 units in January and 3600 units in February.Beridze budgets $20 per unit for direct materials.The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation.The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $38,650.Beridze desires the ending balance in Raw Materials Inventory to be 10% of the next month's direct materials needed for production.Desired ending balance for February is $51,100.What is the cost of budgeted purchases of direct materials needed for January?

A) $58,000
B) $65,200
C) $26,550
D) $25,150

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free