Prepare Bates & ll’s direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, e.g. 52.75.) Marcy Jones, Bates

Prepare Bates & ll’s direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, e.g. 52.75.) Marcy Jones, Bates & ll Fabricators’ purchasing manager, has just received the company’s production budget for the first quarter. January February March Quarter Budgeted unit sales 25,000 28,000 32,000 85,000 + Budgeted ending inventory 5,600 6,400 6,800 6,800 Total units required 30,600 34,400 38,800 91,800 – Beginning inventory 3,200 5,600 6,400 3,200 Budgeted production 27,400 28,800 32,400 88,600 Budgeted sales for April is 34,000 units and for May is 26,000 units. Each brick requires 6 pounds of clay, and Marcy expects to pay $1.50 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 10% of the following month’s production needs. Company policy requires an ending finished goods inventory each month that will meet 20% of the following month’s sales volume. Marcy expects to have 15,000 pounds of clay at a cost of $22,500 in inventory at the beginning of the year : January
February
March
Quart
tory
Beginning inventory
Budgeted ending inventory
Budgeted production
Budgeted purchases (Ibs.)
Budgeted purchases cost
Production needs
Standard cost per pound
$
$
$
$
Standard pounds per unit
Total DM required (Ibs.)
$
$
$