Smart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following:

	Practice Balls		Match Balls
	Units		Selling Price		Units		Selling Price
January	50,000		$12		7,000		$25
February	58,000		$12		7,500		$25
March	80,000		$12		13,000		$25
April	100,000		$12		18,000		$25

Smart Strike requires ending inventory of product to equal 25 percent of the next month's unit sales. Beginning inventory in January was 2,400 practice soccer balls and 400 match soccer balls.

Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 10 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement.

Required:

Question Content Area

Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent.

HINT: Units Produced = Expected Sales + Desired Ending Inventory - Beginning Inventory.

Direct materials purchases budget for polyvinyl chloride panels:

Polyvinyl chloride panels:	January	February
Units produced	fill in the blank 0663ea09ffff005_1	fill in the blank 0663ea09ffff005_2
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced
Direct materials for production	fill in the blank 0663ea09ffff005_6	fill in the blank 0663ea09ffff005_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced
Total needed	fill in the blank 0663ea09ffff005_11	fill in the blank 0663ea09ffff005_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced
Direct materials purchases	fill in the blank 0663ea09ffff005_16	fill in the blank 0663ea09ffff005_17

Question Content Area

Direct materials purchases budget for bladder and valve:

Bladder and valve:	January	February
Units produced	fill in the blank 55225eff0042fae_1	fill in the blank 55225eff0042fae_2
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials for production	fill in the blank 55225eff0042fae_6	fill in the blank 55225eff0042fae_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Total needed	fill in the blank 55225eff0042fae_11	fill in the blank 55225eff0042fae_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials purchases	fill in the blank 55225eff0042fae_16	fill in the blank 55225eff0042fae_17

Question Content Area

Direct materials purchases budget for glue:

Glue:	January	February
Units produced	fill in the blank bbed6cffe06201c_1	fill in the blank bbed6cffe06201c_2
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials for production	fill in the blank bbed6cffe06201c_6	fill in the blank bbed6cffe06201c_7
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Total needed	fill in the blank bbed6cffe06201c_11	fill in the blank bbed6cffe06201c_12
Desired ending inventoryDirect materials for productionDirect materials per unitDirect materials purchasesLess: Beginning inventoryUnits produced	- Select -	- Select -
Direct materials purchases	fill in the blank bbed6cffe06201c_16	fill in the blank bbed6cffe06201c_17