Prepare a direct materials purchasing plan for January, February, and March, based on the following facts.

Global GPS Systems assembles its GPS systems with the following costs. Each GPS requires one computer system and four batteries. Computer Systems cost $175 each, and batteries are $2.25 each. Global is able to reliably obtain computers as needed, and does not maintain them in inventory. However, batteries are stocked in inventory sufficient to produce 25% of the following months expected production. Planned production is as follows:

January 22,000

February 41,650

March 21,950

April 22,000

In accordance with the stocking plan, Januarys beginning inventory included 18,000 batteries.

Worksheet 3

Direct materials purchasing plan:

Scheduled production

22,000

41,650

21,950

Raw materials needed:

Motors (1 per unit)

Estimated cost per motor

Total estimated motor cost

Batteries (4 per unit)

Plus: Target ending raw material*

Batteries needed

Less: Target beginning raw material

Fan battery purchases

Estimated cost per battery

Total estimated motor battery

Total estimated costs (comput

Prepare a direct materials purchasing plan for January, February, and March, based on the following facts.

Global GPS Systems assembles its GPS systems with the following costs. Each GPS requires one computer system and four batteries. Computer Systems cost $175 each, and batteries are $2.25 each. Global is able to reliably obtain computers as needed, and does not maintain them in inventory. However, batteries are stocked in inventory sufficient to produce 25% of the following months expected production. Planned production is as follows:

January 22,000

February 41,650

March 21,950

April 22,000

In accordance with the stocking plan, Januarys beginning inventory included 18,000 batteries.

Worksheet 3

Direct materials purchasing plan:

Scheduled production	22,000		41,650		21,950
Raw materials needed:
Motors (1 per unit)
Estimated cost per motor
Total estimated motor cost
Batteries (4 per unit)
Plus: Target ending raw material*
Batteries needed
Less: Target beginning raw material
Fan battery purchases
Estimated cost per battery
Total estimated motor battery
Total estimated costs (computers + batteries)

ers + batteries)