Direct Materials Purchases Budget Smart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 50,000 $12 7,000 $25 February 58,000 $12 7,500 $25 March 80,000 $12 13,000 $25 April 100,000 $12 18,000 $25 Smart Strike requires ending inventory of product to equal 25 percent of the next month's unit sales. Beginning inventory January was 2,400 practice soccer balls and 400 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 10 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required: Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent. HINT: Units Produced - Expected Sales + Desired Ending Inventory - Beginning Inventory. Direct materials purchases budget for polyvinyl chloride panels: HINT: Units Produced = Expected Sales + Desired Ending Inventory - Beginning Inventory. Direct materials purchases budget for polyvinyl chloride panels: Smart Strike Company Direct Materials Purchases Budget - Polyvinyl Chloride Panels For January and February Polyvinyl chloride panels: January February Units produced 62,100 63,500 Direct materials per unit 0.7 0.7 Direct materials for production 43,470 44,450 Desired ending inventory 4,445 4,445 Total needed 47,915 60,600 x Less: Beginning inventory 4,347 14,500 X Direct materials purchases 43,568 46,100 Feedback Direct materials purchases budget for bladder and valve: Smart Strike Company Direct Materials Purchases Budget - Bladder and Valve For January and February Bladder and valve: January February Units produced Direct materials per unit Direct materials for production Desired ending inventory Total needed Less: Beginning inventory Direct materials purchases Direct materials purchases budget for glue: Smart Strike Company Direct Materials Purchases Budget - Glue For January and February Glue: January February Units produced Direct materials per unit Direct materials for production Desired ending inventory Total needed Less: Beginning inventory Direct materials purchases
