Sales Price 1st 2nd 3rd 4th

Acoustic guitar sales $1,290 400 570 320 690

Electric guitar sales $2,570 230 110 200 120

Each acoustic guitar requires a maple neck blank, which Strum purchases for $60. On December 31, 2014, Strum had 400 neck blanks in inventory. Spoilage during the production process results in a standard quantity of 1.2 necks per acoustic guitar. Because of recent delivery problems, Strum wants to maintain an ending inventory equal to 50 percent of the following quarters production needs. Since the supplier has assured Strum that the delivery issues will be resolved by the end of December, Strum wants only 300 neck blanks in inventory on December 31, 2015. Prepare the purchases budget for neck blanks for 2015. (Enter "per guitar" value to 1 decimal place, e.g. 3.1. Round all other answers to 0 decimal places, e.g. 153.)

Purchases Budget

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual

Budgeted production

Standard necks per guitar

Production needs

Budgeted ending inventory

Total DM required (necks)

Beginning inventory

Budgeted purchases (necks)

Standard price per neck

Budgeted purchases cost