MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hours at a rate of $10 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $11,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's materials requirement. At the end of August the company had 1,760 pounds of direct materials in inventory. The company's production budget reports the following.

Production Budget	September		October		November
Units to be produced	4,400		6,500		6,700

(1)Prepare direct materials budgets for September and October.

Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. Units to produce MCO Leather Direct Materials Budget September October Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases < Required 1 Required 2 >