home / study / business / accounting / questions and answers / The Bakery On The Riverbank Produces Organic Bread ... Question: The Bakery on the Riverbank produces organic bread... Bookmark The Bakery on the Riverbank produces organic bread that is sold by the loaf. Each loaf requires 1 /2 of a pound of flour. The bakery pays $3.50 per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months: July . . . . . . . . . . . . . . . . . 1,480 loaves August . . . . . . . . . . . . . . . 1,800 loaves September . . . . . . . . . . . . 1,620 loaves October . . . . . . . . . . . . . . 1,400 loaves The bakery has a policy that it will have 20 of the following month's flour needs on hand at the end of each month. At the end of June, there were 146 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter. The Bakery on the Riverbank Direct Materials Budget For the Months of July through September july aug sept quarter units to be produced Multiply by: Pounds of flour needed per unit Quantity needed (lbs) for production Plus: Desired ending inventory of direct materials Total quantity (lbs) needed