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 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:

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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:	January	February
Units produced	fill in the blank 629d09fd100506f_1	fill in the blank 629d09fd100506f_2
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedDirect materials per unit	Direct materials per unit	Direct materials per unit
Direct materials for production	fill in the blank 629d09fd100506f_6	fill in the blank 629d09fd100506f_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedDesired ending inventory	Desired ending inventory	Desired ending inventory
Total needed	fill in the blank 629d09fd100506f_11	fill in the blank 629d09fd100506f_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedLess: Beginning inventory	Less: Beginning inventory	Less: Beginning inventory
Direct materials purchases	fill in the blank 629d09fd100506f_16	fill in the blank 629d09fd100506f_17

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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.

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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	fill in the blank 7602f10ab059feb_1	fill in the blank 7602f10ab059feb_2
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedDirect materials per unit	Direct materials per unit	Direct materials per unit
Direct materials for production	fill in the blank 7602f10ab059feb_6	fill in the blank 7602f10ab059feb_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedDesired ending inventory	Desired ending inventory	Desired ending inventory
Total needed	fill in the blank 7602f10ab059feb_11	fill in the blank 7602f10ab059feb_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedLess: Beginning inventory	Less: Beginning inventory	Less: Beginning inventory
Direct materials purchases	fill in the blank 7602f10ab059feb_16	fill in the blank 7602f10ab059feb_17

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Direct materials purchases budget for glue:

Smart Strike Company Direct Materials Purchases Budget - Glue For January and February

Glue:	January	February
Units produced	fill in the blank cef478006febff7_1	fill in the blank cef478006febff7_2
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedDirect materials per unit	Direct materials per unit	Direct materials per unit
Direct materials for production	fill in the blank cef478006febff7_6	fill in the blank cef478006febff7_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedDesired ending inventory	Desired ending inventory	Desired ending inventory
Total needed	fill in the blank cef478006febff7_11	fill in the blank cef478006febff7_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits producedLess: Beginning inventory	Less: Beginning inventory	Less: Beginning inventory
Direct materials purchases	fill in the blank cef478006febff7_16	fill in the blank cef478006febff7_17