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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

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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 46,000 $8.80 6,200 $16.70 February 61,000 $8.80 8,100 $16.70 March 87,000 April 105,000 $8.80 $8.80 12,500 17,500 $16.70 $16.70 FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,200 practice soccer balls and 1,240 match soccer balls. 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. 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 Direct Materials Purchases Budget - Polyvinyl Chloride Panels For January and February January Polyvinyl chloride panels: Units produced February 58,500 X Direct materials for production Total needed Direct materials purchases 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. The purchases amount can be determined by considering beginning and ending (desired) inventory amounts. Also, consider expected usage.

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