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 48,000 $8.95 6,400 $16.00 February 60,000 $8.95 7,900 $16.00 March 81,000 $8.95 13,500 $16.00 April 110,000 $8.95 17,000 $16.00 FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,600 practice soccer balls and 1,280 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. 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 Polyvinyl chloride panels: January February Units produced 50,400 64,200 Direct materials per unit 0.7 0.7 35,280 44,940 Direct materials for production Desired ending inventory 8,988 12,152 44,268 57,092 Total needed Less: Beginning inventory 7,056 8,988 Direct materials purchases 37,212 48,104 Direct materials purchases budget for bladder and valve: Flash Kick Company Direct Materials Purchases Budget - Bladder and Valve For January and February Bladder and valve: January February Units produced 48,000 x 60,000 X Direct materials per unit 1 1 60,000 X Direct materials for production 48,000 X Desired ending inventory 12,000 X 16,200 X 60,000 x 76,200 x Total needed Less: Beginning inventory 9,600 X 12,000 X Direct materials purchases 50,400 x 64,200 X Direct materials purchases budget for glue: FlashKick Company Direct Materials Purchases Budget - Glue For January and February Glue: January February Units produced 48,000 x 60,000 X Direct materials per unit 2 2 96,000 X 120,000 X Direct materials for production Desired ending inventory 24,000 X 32,400 X 120,000 X Total needed Less: Beginning inventory 152,400 X 24,000 X 19,200 X Direct materials purchases 100,800 X 128,400 x
