Flyer, Inc. produces rulers from plastic resin. Flyer has estimated production and sales of rulers in units for the next 2 months as:

MayJune

Estimated production30,00032,000

Estimated sales33,00024,000

Each ruler requires 0.25 pounds of resin. The cost of resin is $4.40 per pound. Flyer wants to have 20% of the next month's materials requirements on hand at the end of each month.

Instructions

Prepare direct materials purchases budget for the month of May.