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SipacoreIndustrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 2020 41,400units 2nd quarter, 2020 37,600units 3rd quarter, 2020

SipacoreIndustrial has estimated that production for the next five quarters will be:

Production Information

1st quarter, 2020 41,400units

2nd quarter, 2020 37,600units

3rd quarter, 2020 45,200units

4th quarter, 2020 35,200units

1st quarter, 2021 43,000units

Finished units of production require6pounds of raw material per unit. The raw material cost is $7per pound. There is $260,820of raw material on hand at the beginning of the first quarter, 2020.Sipacoredesires to have15percent of next quarter's material requirements on hand at the end of each quarter.

Prepare quarterly direct materials purchases budgets forSipacoreIndustrial for 2020. Below is how far I have gotten but now I am stuck please help....

image text in transcribedimage text in transcribed
Sipacore Indush'ial Direct Materials Purchases Budg : For the Year Ending December 31, J Units to be produced V 41400 37'600 Cost of raw material per unit V $ 42 $ 42 $ Cost of raw material needed for production V 17138800 157'9200 Add V l Desired ending inventory.r of raw material V Total material needed V Less V 1 Beginning inventorsr of raw material V Required raw material purchases V :5 $ $ Sipacore Industrial pirect Materials Purchases Budget the Year Ending December 31, 2020 Quarter 2 Quarter 3 Quarter 4 Year 37600 45200 35200 159400 42 $ 42 42 $ 42 1579200 1898400 1478400 6694800

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