Brown Inc. Production budget for Product X for the year ended December 31 is as follows
Product X
Sales ................................. 640,000
Plus desired ending inv ............ 85,000
Total ................................. 725,000
Less estimated beg inv Jan 1 ...... 90,000
Total Production .................... 635,000
In Brown's production operations, Materials A, B, and C are required to make Product X. The quantities of the direct materials expected to be used for each unit of product are as follows.
Product X
Material A ................. .50 pound per unit
Material B ................. 1.00 pound per unit
Material C .................1.20 pound per unit
The prices of direct materials are as follows:
Material A ................. $0.60 per pound
Material B ................. 1.70 Per pound
Material C ................. 1.00 Per pound
Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct (all units purchased are used in production).