Question 3 --/1 View Policies Current Attempt in Progress Perine Company has 2,019 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,200 and 5,800 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $8. Management desires an ending inventory equal to 24% of next month's materials requirements. Prepare the direct materials budget for January. PERINE COMPANY Direct Materials Budget ALA Question 12 View Policies Current Attempt in Progress Danner Company expects to have a cash balance of $46,350 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $87,550, February $154,500. Payments for direct materials: January $51,500, February $77,250. Direct labor: January $30.900, February $46,350. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,630, February $25,750. These costs include depreciation of $1,545 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,450, February $20,600. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,360 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $25,750. The company wants to maintain a minimum monthly cash balance of $20,600. Prepare a cash budget for January and February. DANNER COMPANY Cash Budget For the Two Months Ending February 28, 2020 January February Beginning Cash Balance Sale of Marketable Securities