Ch.9 Q 4

Wehner Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 21 ounces of plastic costing $0.08 per ounce. Wehner molds the plastic into the proper shape. The company has budgeted production of the housings for the next 4 months as follows: Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy the inventory policy. Prepare a direct materials purchases budget for September, October, and November, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole value. round the total purchase cost to nearest whole value. Wehner Company Direct Materials Purchases Budget For September, October, and November