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Part B The budget components for Pitanga Company for the quarter ended June 30 appear below. Pitanga sells trash cans for RM12 each. Budgeted sales

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Part B The budget components for Pitanga Company for the quarter ended June 30 appear below. Pitanga sells trash cans for RM12 each. Budgeted sales and production for the next three months are: Sales Production April 20,000 units 26,000 units May 50,000 units 46,000 units June 30,000 units 29,000 units Pitanga desires to have trash cans on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Pitanga had 4,000 completed units on hand. Five pounds of plastic are required for each trash can. At the end of each month, Pitanga desires to have 10 percent of the following month's production material needs on hand. At March 31, Pitanga had 13,000 pounds of plastic on hand. The materials used in production cost RM0.60 per pound. Each trash can produced requires 0.10 hours of direct labor Required: Prepare direct materials budget and demonstrate how much the materials purchases will be for the month ending April 30. (10 marks)

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