Cutler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows:

Units of Product

2021 Regular Deluxe Total

July 10,000 15,000 25,000

August 6,000 10,000 16,000

September 9,000 14,000 23,000

October 8,000 12,000 20,000

It takes 2 pounds of direct materials to produce the Regular product and 5 pounds of direct materials to produce the Deluxe product. It is the company's policy to maintain an inventory ofdirect materials on hand at the end of each month equal to 30% of the next month's production needs for the Regular product and 20% of the next month's production needs for the Deluxe product. Direct materials inventory on hand on June 30 was 6,000 kilos for the Regular product and 15,000 kilos for the Deluxe product. The cost per pound of materials is $5.00 Regular and $8.00 Deluxe.

Instructions

Prepare separate direct materials budgets for each product for the third quarter of 2021.