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Paver Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2020 39,600 units 2nd quarter, 2020 36,000 units

Paver Industrial has estimated that production for the next five quarters will be:

Production Information

1st quarter, 2020

39,600 units

2nd quarter, 2020

36,000 units

3rd quarter, 2020

43,200 units

4th quarter, 2020

33,600 units

1st quarter, 2021

41,200 units

Finished units of production require 6 pounds of raw material per unit. The raw material cost is $7 per pound. There is $249,480 of raw material on hand at the beginning of the first quarter, 2020. Paver desires to have 15 percent of next quarter's material requirements on hand at the end of each quarter. Prepare quarterly direct materials purchases budgets for Paver Industrial for 2020.

ROEHLER INDUSTRIES

Direct Materials Purchases Budget

For the Year Ending December 31, 2020

________________________________________________________________________________________________________

--------------------------------------------------------------------- Quarter 1 ------- Quarter 2 -------- Quarter 3 -------- Quarter 4 -------- Year

Units to be produced [ # ]

Cost of raw material per unit [ # ]

Cost of raw material needed for production [ # ]

Add desired ending inventory of raw material [ # ]

Total material needed [ # ]

Less beginning inventory of raw material [ # ]

Required raw material purchases [ # ]

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