Budgeted Sales Units:	Q1	Q2	Q3	Q4
	10,000	11,000	12,000	14,000

The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 15kg/unit and the cost of the raw materials is $1.50/kg. Production would like to have 10% of next quarters production needs as the desired ending inventory of raw materials. The assumed Q1 beginning inventory of raw materials and the ending inventory for Q4 is provided.

• Please prepare the Direct Materials Budget

Direct Materials Budget
For the Year Ended December 31, 2019
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Required Production in Cases
Production needs
Add: Desired ending inventory of raw materials				22,500	22,500
Total needs
Deduct: Beginning inventory of raw materials	21,000				21,000
Raw materials to be purchased
Cost of raw materials to be purchased

The Accounts Payable Department has advised Brookes Inc. that they expect to pay for Direct Materials 50% in the period of purchase and 50% in the next period. Accounts Payable beginning balance is provided.

• Please prepare the Schedule of Expected Cash Disbursements for Materials.

Schedule of Expected Cash Disbursements for Materials
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Accounts Payable, beginning balance	$25,800				25,800
First quarter purchases
Second quarter purchases
Third quarter purchases
Fourth quarter purchases
Total cash disbursements