Question 3:

Brown Company manufactures wood tables. Each table requires 15 board-feet of wood. Wood costs $6 per board foot. The company had 2,000 board feet wood on hand at the beginning of July and required enough wood inventory to be on hand to meet 20% of the following months production requirements.

	July	August	September	Quarter
Required Production	5,000	7,000	10,000	22,000

The company expects to produce 8,000 units in October.

Required:

Prepare a materials purchases budget for the quarter. Provide both the number of board feet, and dollar value of inventory to be purchased.