produces organic bread that is sold by the loaf. Each loaf requires

1 divided by 21/2

of a pound of flour. The bakery pays

$ 3.00$3.00

per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months:

The bakery has a policy that it will have

20 %20%

of the following month's flour needs on hand at the end of each month. At the end of June, there were

146146

pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter.

July

1,460 loaves

August

1,940 loaves

September

1,640 loaves

October

1,400 loaves

	july	aug	sept	quarter
units to be produced
multiply by pounds of flour needed per unit
quantity needed (pounds) for production
plus desired ending inventory of direct materials
total quantity (pounds) needed