What is the cost of budgeted purchases of direct materials

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Reference no: EM131206479

Norton Manufacturing expects to produce 2,800 units in January and 3,800 units in February. Norton budgets $50 per unit for direct materials. Indirect materials are in significant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account? (all direct? materials) on January 1 is $38,750. Norton desires the ending balance in Raw Materials Inventory to be 20?% of the next? month's direct materials needed for production. Desired ending balance for February is $52,000. What is the cost of budgeted purchases of direct materials needed for? January?

A. $139,250

B. $129,250

C. $140,000

D. $178,000

Reference no: EM131206479

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