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Laura Kevin, Bramble & Jason Fabricators' purchasing manager, has just received the company's production budget for the first quarter. March January 21,000 February 28,000 30,000
Laura Kevin, Bramble & Jason Fabricators' purchasing manager, has just received the company's production budget for the first quarter. March January 21,000 February 28,000 30,000 10,200 Quarter 79,000 10,200 89,200 8,400 Budgeted unit sales + Budgeted ending inventory Total units required - Beginning inventory Budgeted production 9,000 29.400 37,000 40,200 3,000 8,400 9,000 3,000 26,400 28,600 31,200 86,200 Budgeted sales for April is 34,000 units and for May is 26,000 units. Each brick requires 6 pounds of clay, and Laura expects to pay $1.50 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 10% of the following month's production needs. Company policy requires an ending finished goods inventory each month that will meet 30% of the following month's sales volume. Laura expects to have 15,000 pounds of clay at a cost of $22,500 in inventory at the beginning of the year. Prepare Bramble & Jason's direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal places, eg. 52.75.) January February March $ $ $ $ $ $ $ March Quarter $ $ $ $ $ $
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