Direct Materials Purchases Budget

FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:

	Practice Balls				Match Balls
	Units		Selling Price		Units		Selling Price
January	50,000		$8.75		7,000		$16.00
February	58,000		$8.75		7,500		$16.00
March	80,000		$8.75		13,000		$16.00
April	100,000		$8.75		18,000		$16.00

Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. FlashKicks policy is that 20 percent of the following months production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement.

Required:

Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent.

Direct materials purchases budget for polyvinyl chloride panels:

FlashKick Company
Direct Materials Purchases Budget - Polyvinyl Chloride Panels
For January and February
Polyvinyl chloride panels:	January	February
Units produced
Direct materials per unit Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Direct materials for production
Desired ending inventory Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Total needed
Less: Beginning inventory Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Direct materials purchases

Feedback

The direct materials purchases budget is similar in format to the production budget; it is based on the amount of materials needed for production and the inventories of direct materials. The purchases amount can be determined by considering beginning and ending (desired) inventory amounts. Also, consider expected usage.

Direct materials purchases budget for bladder and valve:

FlashKick Company
Direct Materials Purchases Budget - Bladder and Valve
For January and February
Bladder and valve:	January	February
Units produced
Direct materials per unit Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Direct materials for production
Desired ending inventory Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Total needed
Less: Beginning inventory Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Direct materials purchases

Feedback

The direct materials purchases budget is similar in format to the production budget; it is based on the amount of materials needed for production and the inventories of direct materials. Purchases = Expected usage +Desired ending inventory of direct materials Beginning inventory of direct materials

Direct materials purchases budget for glue:

FlashKick Company
Direct Materials Purchases Budget - Glue
For January and February
Glue:	January	February
Units produced
Direct materials per unit Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Direct materials for production
Desired ending inventory Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Total needed
Less: Beginning inventory Desired ending inventory Direct materials for production Direct materials per unit Direct materials purchases Less: Beginning inventory Units produced
Direct materials purchases