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Please assist with question below and use data provided: Karen Paul, Oriole & Mark Fabricators' purchasing manager, has just received the company's production budget for
Please assist with question below and use data provided:
Karen Paul, Oriole & Mark Fabricators' purchasing manager, has just received the company's production budget for the first quarter. Budgeted unit sales + Budgeted ending inventory Total units required - Beginning inventory Budgeted production January 20,000 8,400 28,400 3,200 25.200 February 28,000 9,000 37,000 8,400 28,600 March 30,000 11,400 41,400 9,000 32,400 Quarter 78,000 11,400 89,400 3,200 86,200 Budgeted sales for April is 38,000 units and for May is 26,000 units. Each brick requires 6 pounds ofclay, and Karen 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 of the following month's production needs. Company policy requires an ending finished goods inventoryeach month that will meet 30%ofthe following month's sales volume. Karen expects to have 15,000 pounds Of clay at a cost Of $22,500 in inventory at the beginning Of the year. Prepare Oriole & Mark's direct materials purchases budget for the first quarter. (Enter price per pound to 2 decimal plac, e.g. 5275.) January February March Quarter
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