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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:

Polyvinyl chloride panels:	January	February
Units produced	fill in the blank 5d286fffdfd7057_1	fill in the blank 5d286fffdfd7057_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 5d286fffdfd7057_6	fill in the blank 5d286fffdfd7057_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Total needed	fill in the blank 5d286fffdfd7057_11	fill in the blank 5d286fffdfd7057_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials purchases	fill in the blank 5d286fffdfd7057_16	fill in the blank 5d286fffdfd7057_17

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Direct materials purchases budget for bladder and valve:

Bladder and valve:	January	February
Units produced	fill in the blank eb271df98076f8b_1	fill in the blank eb271df98076f8b_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 eb271df98076f8b_6	fill in the blank eb271df98076f8b_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Total needed	fill in the blank eb271df98076f8b_11	fill in the blank eb271df98076f8b_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials purchases	fill in the blank eb271df98076f8b_16	fill in the blank eb271df98076f8b_17

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Direct materials purchases budget for glue:

Glue:	January	February
Units produced	fill in the blank 1d9f0c0cdfb6fa6_1	fill in the blank 1d9f0c0cdfb6fa6_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 1d9f0c0cdfb6fa6_6	fill in the blank 1d9f0c0cdfb6fa6_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Total needed	fill in the blank 1d9f0c0cdfb6fa6_11	fill in the blank 1d9f0c0cdfb6fa6_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials purchases	fill in the blank 1d9f0c0cdfb6fa6_16	fill in the blank 1d9f0c0cdfb6fa6_17