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	47,000		$8.70		6,800		$17.50
February	55,000		$8.70		8,400		$17.50
March	87,000		$8.70		13,000		$17.50
April	105,000		$8.70		17,500		$17.50

FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,360 match soccer balls.

Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 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	fill in the blank 4c377b09b00a000_1	fill in the blank 4c377b09b00a000_2
Direct materials per unit	fill in the blank 4c377b09b00a000_4	fill in the blank 4c377b09b00a000_5
Direct materials for production	fill in the blank 4c377b09b00a000_6	fill in the blank 4c377b09b00a000_7
Desired ending inventory	fill in the blank 4c377b09b00a000_9	fill in the blank 4c377b09b00a000_10
Total needed	fill in the blank 4c377b09b00a000_11	fill in the blank 4c377b09b00a000_12
Less: Beginning inventory	fill in the blank 4c377b09b00a000_14	fill in the blank 4c377b09b00a000_15
Direct materials purchases	fill in the blank 4c377b09b00a000_16	fill in the blank 4c377b09b00a000_17

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	fill in the blank b26081fe1f9d035_1	fill in the blank b26081fe1f9d035_2
	fill in the blank b26081fe1f9d035_4	fill in the blank b26081fe1f9d035_5
Direct materials for production	fill in the blank b26081fe1f9d035_6	fill in the blank b26081fe1f9d035_7
	fill in the blank b26081fe1f9d035_9	fill in the blank b26081fe1f9d035_10
Total needed	fill in the blank b26081fe1f9d035_11	fill in the blank b26081fe1f9d035_12
	fill in the blank b26081fe1f9d035_14	fill in the blank b26081fe1f9d035_15
Direct materials purchases	fill in the blank b26081fe1f9d035_16	fill in the blank b26081fe1f9d035_17

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	fill in the blank 35f66ef4d066fb5_1	fill in the blank 35f66ef4d066fb5_2
	fill in the blank 35f66ef4d066fb5_4	fill in the blank 35f66ef4d066fb5_5
Direct materials for production	fill in the blank 35f66ef4d066fb5_6	fill in the blank 35f66ef4d066fb5_7
	fill in the blank 35f66ef4d066fb5_9	fill in the blank 35f66ef4d066fb5_10
Total needed	fill in the blank 35f66ef4d066fb5_11	fill in the blank 35f66ef4d066fb5_12
	fill in the blank 35f66ef4d066fb5_14	fill in the blank 35f66ef4d066fb5_15
Direct materials purchases	fill in the blank 35f66ef4d066fb5_16	fill in the blank 35f66ef4d066fb5_17