Multiple Choice
Norton Manufacturing expects to produce 2,800 units in January and 3,900 units in February.Norton budgets $45 per unit for direct materials.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 $37,950.Norton desires the ending balance in Raw Materials Inventory to be 60% of the next month's direct materials needed for production.Desired ending balance for February is $51,000.What is the cost of budgeted purchases of direct materials needed for January?
A) $126,000
B) $231,300
C) $193,350
D) $163,650
Correct Answer:
Verified
Correct Answer:
Verified
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