Sales Budget Production Budget Direct Mtls Budget Direct Lbr Factory OH Selling Exp Admin Exp Budget Budget Budget Budget Cost of Income Goods Sold Statement Requirement Prepare the Direct Materials Budget for Conlan Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 2,691 lbs of materials, which complies with the policy. The company expects to have 4,680 lbs. of materials in inventory at year-end. The product's manufacturing cost is $215 per unit, including per unit costs of $90 for materials (6 lbs. at $15 per lb.), $88 for direct labor (4 hours x $22 direct labor rate per hour), $25 for variable overhead, and $12 for fixed overhead. Show less Materials requirements per unit Materials needed for production (pounds) Budgeted ending inventory (units) Total materials requirements (pounds) Materials to be purchased (pounds) Material price per pound Total cost of direct materials purchases Conlan Inc. Direct Materials Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. 897 962 1,040 Fourth Qtr. 1,404 Total 6.0 6.0 6.0 6.0 5,382 (2,691) $ 15.00 $ 15.00 $ 15.00 S 15.00 < Production Budget Direct Lbr Budget >