orton Manutacturing expects to produce 2,900 units in January and 3,600 units in Febnuary. Norton budgets $20 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance inthe raw materials inventory account (all direct materials)on January 1 is $38.650. Norton desires the endng balance in raw materials inventory to be 10% of the next month’s direct materials needed for production. Desired ending balance for February is $51.100. What is the cost of budgeted purchases of direct materials needed for January? o A $50,000 O B $65,200 C $26,550 O D $25.150 0

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orton Manutacturing expects to produce 2,900 units in January and 3,600 units in Febnuary. Norton budgets $20 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance inthe raw materials inventory account (all direct materials)on January 1 is $38.650. Norton desires the endng balance in raw materials inventory to be 10% of the next month’s direct materials needed for production. Desired ending balance for February is $51.100. What is the cost of budgeted purchases of direct materials needed for January? o A $50,000 O B $65,200 C $26,550 O D $25.150 0

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