) The Blue Ridge Company is preparing its 3rd Quarter budget. Its production budget show that the

required production in unit is:

July 40,000

August 50,000

September 30,000

October 20,000

Each unit of finished goods requires 3 lbs. of direct materials. Each pound of material cost $5.00 per lbs.

The companys policy for ending inventory for direct materials is that the end-of-the-month inventory levels for

direct materials will be equal to seven percent of the next months production needs. The direct materials inventory

for the quarter has a beginning balance in units of 8,400 lbs. Please provide the direct materials budget for July,

August, September and the quarter. Show your work for full or for partial credit.

Direct Materials Purchases Budget
	July	August	September	Quarter
Units to be produced
Quantity (pounds) to be purchased

What is the ending inventory of direct material for July in lbs.?_____