to continue

C. Ally Manufacturing Direct Materials Purchases Budget (Schedule 3) For the Quarter Ended March 31 January February March Total Metal Comp. Metal Comp. Metal Comp. Metal Comp. Units to be produced (Sch. 2) 51,600 48,000 x Direct materials per unit 10 6 Production needs 516,000 288,000 Desired ending inventory 288,000 172,800 308,000 184,800 Total needs 804,000 460,800 Less: Beginning inventory 258,000 144,000 Direct materials to be purchased 546,000 316,800 x Cost per unit $8 $5 $ Total cost 4,368,000 $1,584,000