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The Bakery with a View produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery

The Bakery with a View 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 152 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter.

July. . . . . . . . . . . . . . . . . . .

1,520 loaves

August. . . . . . . . . . . . . . . .

1,820 loaves

September. . . . . . . . . . . . .

1,700 loaves

October. . . . . . . . . . . . . . .

1,580 loaves

Begin the direct materials budget by determining the total quantity needed, then complete the budget. (Enter the pounds per unit as a decimal to two places. Round your calculations to the nearest whole number.)

The Bakery with a View

Direct Materials Budget

For the Months of July through September

July

August

September

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

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