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Direct Materials Purchases Budget Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.14 per

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Direct Materials Purchases Budget Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.14 per cunct. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings for the next 4 months as follows: Units July 3,500 August 4,400 September 4,900 October 6,300 Inventory policy requires that suficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory or plastic at the beginning of July equals exactly the amount needed to satisty the inventory policy Required: Prepare a direct materials purchases budget for July August, and September, showing purchases in units and in dollars for each month and in total required, round the total purchase cost to nearest whole value Langer Company Direct Materiais Purchases Budget For July August and September July August September Total Units to be produced Direct materials per unit (ounces) Production needs Desired dig inventory Council) Totalnes Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of pla beginning of July equais exactly the amount needed to satisty the inventory policy Required: Prepare a direct materiais purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total. If required. total purchase cost to nearest whole value. Langer Company Direct Materials Purchases Budget For July, August and September July August September Total Units to be produced Direct materials per unit (ounces) Production needs Desired ending inventory counces) Total needs Beginning inventory Direct materials to be purchased ounces) Cost per ounce 50.14 $0.14 Total purchase cost 5014 30.14

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