The Bakery on the Riverbank produces organic bread that is sold by the loaf. Each loaf requires 1 /2 of a pound of flour. The bakery pays $3.50 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: July . . . . . . . . . . . . . . . . . 1,460 loaves August . . . . . . . . . . . . . . . 1,840 loaves September . . . . . . . . . . . . 1,600 loaves October . . . . . . . . . . . . . . 1,520 loaves 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 146 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter.

The Bakery on the Riverbank

Direct Materials Budget

For the Months of July through September

	july	aug	sept	quarter
units to be produced
Multiply by: Pounds of flour needed per unit
Quantity needed (lbs) for production
Plus: Desired ending inventory of direct materials
Total quantity (lbs) needed