Answer and Explanation:
The Preparation of Yogi 's direct materials budget for January and February is shown below:-
Direct material budget
Two months ended Jan 31 and Feb 28
January February
Budgeted units to be produced a 1,700 2,180
Direct material pounds per unit b 3 3
Direct materials needed for
production (c = a × b) 5,100 6,540
Add: Desired direct material
in ending inventory (pounds) d 3,060 4,300
(5,100 × 0.6)
Total direct materials needed 8,160 10,840
(e = c + d)
Less: Direct material beginning in
inventory(pounds) f 5,200 3,060
Budgeted purchase of direct
material g = e - f 2,960 7,780
Direct material cost per pound h $15 $15
Budgeted cost of direct material
purchases i = g × h $44,400 $116,700
