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 42,000 $8.90 6,400 $17.10 February 60,000 $8.90 7,800 $17.10 March 86,000 $8.90 12,000 $17.10 April 100,000 $8.90 16,000 $17.10 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 8,400 practice soccer balls and 1,280 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. Smart Strike's policy is that 20 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. 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 Direct materials per unit Direct materials for production Desired ending inventory Total needed Less: Beginning inventory Direct materials purchases Feedback January February Check My Work The direct materials purchases budget is similar in format to the production budget; it is based on the amount of materials needed for production and the inventories of direct materials. The purchases amount can be determined by considering beginning and ending (desired) eBook The direct materials purchases budget is similar in format to the production budget; it is based on the amount of materials needed for production and the inventories of direct materials. The purchases amount can be determined by considering beginning and ending (desired) inventory amounts. Also, consider expected usage. 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 per unit Direct materials for production Desired ending inventory Total needed Less: Beginning inventory Direct materials purchases Feedback January February Check My Work The direct materials purchases budget is similar in format to the production budget; it is based on the amount of materials needed for production and the inventories of direct materials. Purchases = Expected usage + Desired ending inventory of direct materials - Beginning eBook Check My Work The direct materials purchases budget is similar in format to the production budget; it is based on the amount of materials needed for production and the inventories of direct materials. Purchases = Expected usage + Desired ending inventory of direct materials - Beginning inventory of direct materials Direct materials purchases budget for glue: Smart Strike Company Direct Materials Purchases Budget - Glue For January and February Glue: Units produced Direct materials per unit Direct materials for production Desired ending inventory Total needed Less: Beginning inventory Direct materials purchases Feedback Check My Work January February