Direct Materials Purchases Budget

Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.12 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 30% 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. If required, round the 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	fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4
Direct materials per unit (ounces)	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
Production needs	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Desired ending inventory (ounces)	fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16
Total needs	fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20
Less: Beginning inventory	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24
Direct materials to be purchased (ounces)	fill in the blank 25	fill in the blank 26	fill in the blank 27	fill in the blank 28
Cost per ounce	$0.12	$0.12	$0.12	$0.12
Total purchase cost	$fill in the blank 29	$fill in the blank 30	$fill in the blank 31	$fill in the blank 32