Blue Spruce, Inc. produces pellets for cornhole bags from plastic resin which it sells by the pound. Blue Spruce has estimated production and sales of pellets in pounds for the next $2$ months as:

$\backslash$table$[[,$May,June$],[$Estimated production,$42,500,48,000],[$Estimated sales,$50,200,34,900]]$

Each pound of pellets requires $0\mathrm{.}25$ pounds of resin. The cost of resin is $$5\mathrm{.}50$ per pound. Blue Spruce wants to have $20\%$ of the next month's direct materials requirements on hand at the end of each month.

Prepare a direct materials purchases budget for the month of May. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses eg$.(45).$ Round pounds needed per unit and cost per pound to two decimal palces.$)$

BHIESPRUCE INC

BLUE SPRUCE, INC.

Direct Materials Purchases Budget Month of May