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The Bakery by the Bay produces organic bread that is sold by the loaf. Each loaf requires 1 2 of the pound of flour. The

The Bakery by the Bay produces organic bread that is sold by the loaf. Each loaf requires 12 of
the 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:
The bakery has a policy that it will have 10% of the following month's flour needs on hand at the
end of each month. At the end of June, there were 100 pounds of flour on hand.
Prepare a direct materials budget by month and in total for the third quarter.
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