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	40,000		$8.50		6,800		$17.50
February	63,000		$8.50		8,000		$17.50
March	87,000		$8.50		13,500		$17.50
April	105,000		$8.50		16,000		$17.50

Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 8,000 practice soccer balls and 1,360 match soccer balls.

Every practice ball requires 0.5 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.

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 0fff1bf1b061070_1	fill in the blank 0fff1bf1b061070_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 0fff1bf1b061070_6	fill in the blank 0fff1bf1b061070_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 0fff1bf1b061070_11	fill in the blank 0fff1bf1b061070_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 0fff1bf1b061070_16	fill in the blank 0fff1bf1b061070_17

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 9e2cde0e700f042_1	fill in the blank 9e2cde0e700f042_2
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials for production	fill in the blank 9e2cde0e700f042_6	fill in the blank 9e2cde0e700f042_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Total needed	fill in the blank 9e2cde0e700f042_11	fill in the blank 9e2cde0e700f042_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials purchases	fill in the blank 9e2cde0e700f042_16	fill in the blank 9e2cde0e700f042_17

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 ba246df57f90010_1	fill in the blank ba246df57f90010_2
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials for production	fill in the blank ba246df57f90010_6	fill in the blank ba246df57f90010_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Total needed	fill in the blank ba246df57f90010_11	fill in the blank ba246df57f90010_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials purchases	fill in the blank ba246df57f90010_16	fill in the blank ba246df57f90010_17