Bell expects to produce 1,900 finished goods units in January and 2,200 fınishedTimntsAttegoods units in February. The company budgets 4 pounds of Direct Materials isused to manufacture each finished goods unit. The company budgets the cost of2Direct Materials to be $12 per pound. (Indirect materials are insignificant and not2-considered for budgeting purposes.) The balance in the Raw Materials Inventoryaccount (all direct materials) on January 1 is 4,830 pounds. Bell desires the endingbalance in Raw Materials Inventory to be 25% of the next month's direct materialsneeded for production. Desired ending balance for February is 4,960 pounds.The budgeted cost of purchases of direct raw materials in February isO $128,380O $159,550$143,670rO $138,720dingsO $113,740

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Description: Bell expects to produce 1,900 finished goods units in January and 2,200 fınishedTimntsAttegoods units in February. The company budgets 4 pounds of Direct Materials isused to manufacture each finished goods unit. The company budgets the cost of2Direc

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Business

Accounting

Bell expects to produce 1,900 finished goods units in January and 2,200 fınished oods units in Fehruany The

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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