## Answers

Direct material budget

For month ended January 31

Budgeted production | 440 |

Raw material per unit | 6 |

Material needed for production | 2640 |

Add: Desired ending inventory (290*6*30%) | 522 |

Total material requirement | 3162 |

Less; Beginning inventory | -150 |

Material to be purchase | 3012 |

Cost per pound | 3 |

Total cost of direct material purchase | 9036 |

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