Direct Materials Purchases Budget Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 17 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. September 4,900 17 Total 12,800 17 Langer Company Direct Materials Purchases Budget For July, August and September July August Units to be produced 3,500 4,400 Direct materials per unit (ounces) 17 17 Production needs 59,500 74,800 Desired ending inventory (ounces) 22,440 24,990 Total needs 81,940 99,790 Less: Beginning inventory 17,850 22,440 Direct materials to be purchased (ounces) 64,090 77,350 Cost per ounce $0.12 $0.12 Total purchase cost 7,691 $ 9,282 83,300 65,280 X 217,600 65,280 x 148,580 X 282,880 X