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What is the total cost of direct materials to be purchased

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Question - Company D is preparing its direct materials budget. Budgeted production for January, February, March, and April are 5000 units, 7000 units, 6500 units, and 8000 units, respectively. To produce one unit of finished product, three kilograms of direct materials are needed. Direct materials inventory at the beginning of any month should be 20% of that month's production needs. Each kilogram of direct material costs the company $11. What is the total cost of direct materials to be purchased in February?

Reference no: EM133177579

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