Zortek Corp. budgets production of 470 units in January and 210 units in February. Each finished unit requires six pounds of raw material Z, which costs $2 per pound. Each month’s ending inventory of raw materials should be 30% of the following month’s budgeted production. The January 1 raw materials inventory has 120 pounds of Z. Prepare a direct materials budget for January.

Preparation of the direct material budget is presented below:

Explanation:

                                                Zortek Corp.

                                     Direct Materials Budget

                                  For Month Ended January 31

Budget production in units  470 units

Price of material per pound $2 per pound

Materials needed for production  $940

Add: Budgeted ending inventory (210 units × $2 per pound × 30%) 126 units

Total sum of  materials requirements  1,066 units

Less: Beginning inventory  120 pounds

Materials purchased 946 pounds

Price of material per pound$2 per pound

Total cost of direct materials purchases$1,892      

answer: b) the us is the leading importer but not the leading exporter.

extra info:

the u.s is the largest importer but it is not the largest exporter as china sits on the top of the table when it comes to leading exporters.

but u.s is not far from first,

they rank in 2nd globally as the worlds largest exporter.

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