On 1 ^ (st) April 2016M / s Punawala & Co Latur Purchased Equipment of Rs.50000 Against cheque. They decided to follow Fixed Instalment Method of Depreciation. The Life of the equipment is estimated as 8 Years and scrap value of the equipment at the end of its life is estimated as Rs.2000 on 1 ^ 11 Jan 2019 entire Equipment is sold for Rs.35000. The Firm closes its Books of Accounts on Prepare Equipment Account and Depreciation Account March each year. 31^ *​

Norton manufacturing expects to produce 2,900 units in january and 3,600 units in february. norton budgets $20 per unit for direct materials. indirect materials are insignificant and not considered for budgeting purposes. the balance in the raw materials inventory account (all direct materials) on january 1 is $38,650. norton desires the ending 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? $58,000 $65,200 $26,550 $25,150