Sarasota, Inc. makes and sells serving trays. Each tray uses 1/2 pound of plastic. Budgeted production of trays in units for the next three months is as follows:

	April	May	June
Budgeted Production	19,500	23,500	24,400

The company wants to maintain monthly ending inventories of plastic equal to 20% of the following month's budgeted production needs. The cost of plastic is $2 per pound. Prepare a direct materials purchases budget for the month of May.

Trays to be produced during May	23500
Pounds of plastic needed for each trays	0.5
Total Pounds of plastic needed for production	11750
Add:Ending Inventory, pounds of plastic desired	2440
Less:Beginning Inventory, pounds of plastic	2350
Pounds of plastic needed to purchase
Cost per pound	2.0
Estimated cost of purchases of May

Add formulas please!!