Smackaroos Enterprises manufactures two models of brooms, Model X2 and Model T3. The budgeted units to be produced are as follows:

	Model X2	Model T3	Total
July	8,750	9,250	18,000
August	5,125	7,125	12,250
September	7,350	9,000	16,350
October	9,125	14,375	23,500

It takes 1.7 kilograms of direct materials to produce Model X2 and twice as many kilograms of direct materials to produce Model T3. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 25% of the next month's production needs.

The cost per kilogram of materials is $4.50 for T3 while the cost per kilogram of materials for X2 is the cost of the materials for T3.

Instructions 15 MARKS

Prepare direct materials budgets for each product for the month of September.

Show calculations