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: Question Content Area 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 444dcdfcc02f04b_1 7,000 fill in the blank 444dcdfcc02f04b_2 67,800 Direct materials per unit Direct materials per unit 0.5 Direct materials per unit Direct materials for production fill in the blank 444dcdfcc02f04b_6 fill in the blank 444dcdfcc02f04b_7 Desired ending inventory Desired ending inventory Desired ending inventory Total needed fill in the blank 444dcdfcc02f04b_11 fill in the blank 444dcdfcc02f04b_12 Less: Beginning inventory Less: Beginning inventory Less: Beginning inventory Direct materials purchases fill in the blank 444dcdfcc02f04b_16 fill in the blank 444dcdfcc02f04b_17 Feedback Area Feedback 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. Question Content Area 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 83169b035f9f07f_1 44,600 fill in the blank 83169b035f9f07f_2 - Select - - Select - Direct materials for production fill in the blank 83169b035f9f07f_6 fill in the blank 83169b035f9f07f_7 - Select - - Select - Total needed fill in the blank 83169b035f9f07f_11 fill in the blank 83169b035f9f07f_12 - Select - - Select - Direct materials purchases fill in the blank 83169b035f9f07f_16 fill in the blank 83169b035f9f07f_17 Feedback Area Feedback 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 Question Content Area 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 2a7279009022055_1 58,500 fill in the blank 2a7279009022055_2 - Select - - Select - Direct materials for production fill in the blank 2a7279009022055_6 fill in the blank 2a7279009022055_7 - Select - - Select - Total needed fill in the blank 2a7279009022055_11 fill in the blank 2a7279009022055_12 - Select - - Select - Direct materials purchases fill in the blank 2a7279009022055_16 fill in the blank 2a7279009022055_17 Feedback Area Feedback 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 Feedback Area Feedback Partially correct Check My Work