The Bakery at the Ocean produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.00 per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months: (Click the icon to view the units to be produced.) The bakery has a policy that it will have 20% of the following month's flour needs on hand at the end of each month. At the end of June, there were 150 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter. ine bakery at the Ocean Direct Materials Budget For the Months of July through September July August Units to be produced 1,500 1,900 September 1,760 Quarter 5,160 Multiply by: Pounds of flour needed per unit 0.50 0.50 0.50 0.50 Quantity needed (lbs) for production 750 950 880 2,580 Plus: Desired ending inventory of direct materials 190 176 151 151 Total quantity (lbs) needed 940 1,126 1,031 2,731 Less: Beginning inventory of direct materials Quantity (lbs) to purchase Multiply by: Cost per pound Total cost of direct material purchases Get more help Clear all Check answer