Problem 3 (15 points) DIRECT MATERIAL PURCHASES BUDGET Shawn Manufacturing makes and sells toasters. Each toaster uses 3/4 pound of plastic. Budgeted production of toasters in units for the next three months is as follows: April 42,000 June 48,000 May 40,000 Budgeted production The company wants to maintain monthly ending inventories of plastic equal to 25% of the following month's budgeted production needs. The cost of plastic is $2.12 per pound Instructions Prepare a direct materials purchases (plastic) budget for the month of May Units to be produced Pounds for each toaster Total pounds needed Add: Ending Inventory Less: Beginning Inventory Total Pounds of plastic needed Cost per pound Estimated Cost of Purchases for May