Practice Problem #1 Walt's Whistles manufactures referee whistles. At the end of February, Walt's has 100 pounds of steel for whistles in inventory. Walt's expects to produce and sell 10,000 whistles in March. Each whistle requires a standard quantity of 0.1 pounds of steel. Walt wants to have 500 pounds of steel in inventory at the end of March. Walt's has no whistles in beginning finished goods inventory and does not plan to have any whistles in ending finished goods inventory. Each pound of steel has a standard cost of $5.00. Prepare Walt's purchasing budget for steel in March. How much does Walt's expect to spend on steel in March? Desired Ending Inventory 500 lbs Plus needed for production 1,000 lbs (10,000 whistles x .1 lbs each) Less Beginning Inventory (100 lbs) Reauired purchases in lbs 1,400 lbs Standard cost per lb $5.00