Yordi expects to produce 1.700 units in January and 2,120 units in February. The company budgets 3 pounds per unit of direct materials at a cost of...

Yordi expects to produce 1.700 units in January and 2,120 units in February. The company budgets 3 pounds per unit of direct materials at a cost of $45 per pound. 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 5,100 pounds. Yordi desires the ending balance in Raw Materials Inventory to be 20% on the next month's direct materials needed for production. Desired ending balance for February is 4,400 pounds. Prepare Yordi's direct materials budget for January and February.

Begin by preparing the direct materials budget for January and February through total direct materials needed line and then complete the budget by calculating the budgeted cost of direct materials purchases.