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 April 80,000 100,000 $12 $12 13,000 18,000 $25 $25 Smart Strike requires ending inventory of product to equal 25 percent of the next month's unit sales. Beginning inventory in 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: Smart Strike Company Direct Materials Purchases Budget - Polyvinyl Chloride Panels For January and February Polyvinyl chloride panels: Units produced January February Direct materials per unit 59,125 X 72,375 X 0.7 0.7 Direct materials for production 41,388 X 50,663 X Desired ending inventory 5,066 X 6,948 X Total needed 46,454 X 57,610 X 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: Units produced January 59,125 X Direct materials per unit 0.7 February 72,375 X 0.7 Direct materials for production 41,388 X 50,663 X Desired ending inventory 5,066 X 6,948 X Total needed 46,454 X 57,610 X Less: Beginning inventory 4,139 X 5,066 X Direct materials purchases 42,315 X 52,544 X 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: Units produced Direct materials for production Total needed Direct materials purchases Feedback Check My Work January February Smart Strike Company Direct Materials Purchases Budget - Bladder and Valve For January and February Bladder and valve: Units produced Direct materials for production Total needed Direct materials purchases Feedback January February Direct materials purchases budget for glue: Smart Strike Company Direct Materials Purchases Budget - Glue For January and February Glue: Units produced Direct materials for production Total needed Direct materials purchases Feedback Feedback January February