Direct Materials Purchases Budget Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.08 per ounce. 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 sufficient plastic be in ending monthly inventory to satisfy 20% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy 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. Langer Company Direct Materials Purchases Budget For July, August, and September July August 3,500 4,400 Total September 4,900 Units to be produced 12,800 Direct materials per unit (ounces) Production needs Desired ending inventory (ounces) Total needs Less: Beginning inventory Direct materials to be purchased (ounces) Cost per ounce 55,200 $0.08 4,416 67,500 $0.08 5,400 77,700 $0.08 6,216 200,400 $0.08 16,032 Total purchase cost $ $ $ $