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Direct Materials Purchases Budget Langer Company produces plastic items, induding plastic housings for humidifiers. Each housing requires about 1 7 ounces of plastic costing $
Direct Materials Purchases Budget
Langer Company produces plastic items, induding plastic housings for humidifiers. Each housing requires about ounces of plastic costing $ per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings for the next months as follows:
tableUnitsJulyAugustSeptemberOctober
Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy of the following month's production needs. The inventory of plastic at the begining of July equals exactly the amount needed to satisfy the inventory policy.
Requlred:
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 punchase cost to nearest whole value.
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