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Q.2 Prepare a Direct Material Purchase Budget with the following information.

Plastic is the only direct material used in Framecrafts picture frames.

Each picture frame required 8 ounces of plastic.

Framecrafts Purchasing Department has estimated the cost of the plastic used in the picture frames at $ 0.06 per ounce.

Assume that each quarters desired units of ending direct materials inventory become the next quarters desired units of beginning direct materials inventory.

Framecrafts desired level of ending direct materials inventory is 10 percent of the next quarters budgeted production unit.

Beginning inventory of direct materials for the first quarter is 12000 whereas the ending direct material inventory for the fourth quarter is 20000.

Particulars	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year Total
Total Budgeted Production Units	15000	30000	20000	25000	90000