3. Direct materials purchases budget The Bottled Water Company Direct Materials Purchases Budget For the Year Ended December 31 Quarter 2 Year Total production units X 20 ounces per unit Total production needs in ounces Plus desired ounces of ending direct materials inventory 39,000 32,000 50,500 55,500 780,000 128,000 908,000 240,000 240,000 Less desired ounces of beginning direct materials inventoryt materials to be purchased X Cost per ounce 156,000 ? 156,000 Total ounces of direct 752,000 Total cost of direct materials purchases $7,520 "Desired ounces of ending direct materials inventory 20% of next quarter's budgeted production needs in ounces. +Desired ounces of beginning direct materials inventory 20% of current quarter's bud geted production needs in ounces 4. Direct labor budget The Bottled Water Company Direct Labor Budget For the Year Ended December 31 Quarter 2 Year Total production units x Direct labor hours per unit Total direct Labor hours Direct labor cost per hour Total direct labor cost 39,000 .001 39 $8 X ? ? X ? X ? X ? 312_ X ? X? X