DSP Products Inc. makes and sells boat tarps. The Purchasing Manager has prepared the production budget for the second quarter of 2013 as follows:

April......2,500 units May......4,000 units June.....6,800 units

Production for both July and August are expected to be 7,000 units each. Each completed unit of finished product requires 50 yards of heavy duty plastic material which cost $1.40 per yard. The company has determined that it needs 15% of next month's raw material needs on hand at the end of each month. The company had 18,750 yards of plastic material on hand at the end of March.

It is the company's policy to pay for one-half of the month direct materials purchases in the month of purchase and the remainder in the following month.

Required: prepare a direct materials purchases budget for the second quarter of 2013.

DSP Products Inc.

Direct Materials Purchases Budget

Quarter Ending June 30

	___April__	_____May____	____June____	____Total____
Required Prodution
Plastic Needed Per Unit (yds)
Material Needed For Production (yds)
Desired Ending Balance
Total Budgeted Projected Needs (yds)
(Less) Beginning Direct Materials
Material To Be Purchased (yds)
Cost Per Yard
Projected Direct Materials Purchases