Brief Exercise 9-4 Perine Company has 1,640 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,100 and 5,600 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 20% of next month’s materials requirements. Prepare the direct materials budget for January.

Total cost= $140,800

Explanation:

Giving the following information:

Beginning inventory= 1,640 pounds

Required production:

January= 4,100 units

February= 5,600 units

2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6.

Management desires an ending inventory equal to 20% of next month’s materials requirements.

First, we will determine the required direct material pounds for January:

Budgeted direct material:

Sales= 4,100*2= 8,200 pounds

Ending inventory= (5,600*2)*0.20= 2,240

Beginning inventory= (1,640)

Total= 8,800

Total cost= 8,800*16= $140,800

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.