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Zortek Corp. budgets production of 410 units in January and 230 units in February. Each
finished unit requires one pounds of raw naterial Z. which costs $3 per pound. Each month's
ending inventory of raw materials should be 30% of the following month's oudgeted production.
The January 1 raw materials inventory has 170 pounds of Z. Prepare a direct materials budget for
January.

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Zortek Corp. budgets production of 410 units in January and 230 units.pdf

  • 1. Zortek Corp. budgets production of 410 units in January and 230 units in February. Each finished unit requires one pounds of raw naterial Z. which costs $3 per pound. Each month's ending inventory of raw materials should be 30% of the following month's oudgeted production. The January 1 raw materials inventory has 170 pounds of Z. Prepare a direct materials budget for January.