1. For the third quarter of the upcoming year, Teen Entertainment Corp expects the firm will produce its one product, New Directioner T-shirts, according to the following schedule:

July August September October Cases to produce

6,000 4,000 5,000 7,000

The firm expects to use 7 pounds of cotton for each case of Directioner T-shirts Cost of cotton is $12 per pound. The desired ending inventory of cotton at the end of each month is 10% of the following months production needs. Junes ending inventory of cotton is 3,000 pounds. The firm expects to produce 2,000 cases of Directioner T-shirts in April. Required: Prepare a direct materials budget for the third quarter of the year.

Record on your solution sheet these numbers: The Cost of Direct Materials $ amount for all three months of the Quarter OR (if in doubt), just the bottom two rows of your Direct Materials Budget