PLEASE SHOW WORK

On January 1, 2014, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2014.

Sales units:		First quarter 5,000; second quarter 6,000; third quarter 7,000
Ending raw materials inventory:		40% of the next quarters production requirements
Ending finished goods inventory:		25% of the next quarters expected sales units
Third-quarter production:		7,200 units

The ending raw materials and finished goods inventories at December 31, 2013, follow the same percentage relationships to production and sales that occur in 2014. 3 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.

1quarter 2quarter

Expected Unit Sales: ____________________ _______________________

Add Desired Ending Finished Goods Unit:____________________ _______________________

Total Required Units: ____________________ _______________________

Less Begining Finished Goods Unit: ____________________ _______________________

Required Production Units: ____________________ _______________________

Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2014.

Units to be Produced: ____________________ _______________________

Direct Materials per unit: ____________________ _______________________

Total Pounds Needed for Production: ____________________ _______________________

Add: Desired Ending Direct Materials ____________________ _______________________

Total Materials Required: ____________________ _______________________

Less Beginning Direct Materials: ____________________ _______________________

Direct Materials Purchases: ____________________ _______________________

Cost Per Pound: ____________________ _______________________

Total Cost of Direct Materials Purchases: ____________________ _______________________