Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's 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 47,000 $8.85 6,400 $16.40 February 56,000 $8.85 7,800 $16.40 March 89,000 $8.85 April 105,000 $8.85 12,500 16,500 $16.40 $16.40 FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,280 match soccer balls. Every practice ball requires 0.5 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. FlashKick's policy is that 20 percent of the following month's 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 FlashKick Company Direct Materials Purchases Budget - Polyvinyl Chloride Panels For January and February Polyvinyl chloride panels: January February Units produced 48,800 62,600 Direct materials per unit 0.5 0.5 Direct materials for production 24,400 31,300 Desired ending inventory 3,130 X 4,610 X Total needed 27,530 X 35,910 X Less: Beginning inventory Direct materials purchases Feedback 4,880 6,260 22,650 X 29,650 X Check My Work 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 Direct materials purchases budget for bladder and valve: FlashKick Company Direct Materials Purchases Budget - Bladder and Valve For January and February Bladder and valve: Units produced Direct materials per unit January February 48,800 62,600 1.0 1.0 Direct materials for production 48,800 62,600 Desired ending inventory 12,520 9,220 X Total needed 61,320 > 71,820 X Less: Beginning inventory 9,760 12,520 Direct materials purchases 51,560 59,300 X Feedback Check My Work 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 48,800 62,600 Direct materials per unit 3.00 3.00 Direct materials for production 146,400 187,800 Desired ending inventory 112,680 X 27,660 X Total needed 259,080 X 215,460 X Less: Beginning inventory 29,280 37,560 Direct materials purchases 229,800 X 177,900 X Feedback Check My Work 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 Foodback