Yosko expects to produce 1,950 units in January and 2,114 units in February. The company budgets $85 per unit for direct materials. Indirect materials are insignifi cant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $50,000. Yosko desires the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is $51,400. Prepare Yosko's direct materials budget for January and February.
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