When working on this assignment do the production budget first and then the material budget. I set up the below to get you started Production Budget

July August

Sales 8000 8700

Add: closing inventory(40% of Next month sales) 3480 3040

Total inventory required 11480 11740

Less: Beginning Inventory -3200 -3480

Production Required 8280 8260

Material purchase Budget

July August October

Production Required 8280 8260

x DM req per unit 12 12

DM required of production 99360 99120

Add: Budgeted Ending DM 30% 29736

Less: Beginning DM 29808

Budgeted DM purchase 99288

Cost per foot $0.70

Budgeted DM purchase in $ $69,501.60