Question

(SCROLL LEFT AND RIGHT TO SEE PROBLEM)

Marcy Jones, Marigold & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter.

		January		February			March			Quarter
Budgeted Production		16,925		31,455			27,913			76,293

Budgeted sales of April is 23,780 and its beginning inventory is 3,805. May month budgeted sales is 18,860. Company policy requires an ending finished goods inventory each month that will meet 16% of the following month’s sales volume.

Each brick requires 4.00 pounds of clay, and Marcy expects to pay $0.33 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 8% of the following month's production needs. Marcy expects to have 15,498 pounds of clay at a cost of $6,199 in inventory at the beginning of the year.

Prepare Marigold & Hill's direct materials purchases budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275 and enter price per pound to 2 decimal places, e.g. 52.75.)

			January		February		March		Quarter
	Select an opening direct materials purchases budget itemSelect an opening direct materials purchases budget item                                                          Budgeted ending inventoryBudgeted productionStandard cost per poundBudgeted purchases (lbs.)Total DM required (lbs.)Standard pounds per unitBeginning inventoryBudgeted purchases costProduction needs		Enter a number of unitsEnter a number of units		Enter a number of unitsEnter a number of units		Enter a number of unitsEnter a number of units		Enter a number of unitsEnter a number of units
	Select an itemSelect an item                                                          Standard cost per poundBeginning inventoryBudgeted ending inventoryBudgeted purchases costBudgeted productionTotal DM required (lbs.)Standard pounds per unitBudgeted purchases (lbs.)Production needs		Enter an amount of pounds per unitEnter an amount of pounds per unit		Enter an amount of pounds per unitEnter an amount of pounds per unit		Enter an amount of pounds per unitEnter an amount of pounds per unit		Enter an amount of pounds per unitEnter an amount of pounds per unit
	select a summarizing line for the first partselect a summarizing line for the first part                                                          Budgeted ending inventoryStandard cost per poundProduction needsBudgeted purchases (lbs.)Budgeted productionBudgeted purchases costBeginning inventoryStandard pounds per unitTotal DM required (lbs.)		enter a total amount of pounds for the first partenter a total amount of pounds for the first part		enter a total amount of pounds for the first partenter a total amount of pounds for the first part		enter a total amount of pounds for the first partenter a total amount of pounds for the first part		enter a total amount of pounds for the first partenter a total amount of pounds for the first part
	Select an itemSelect an item                                                          Standard cost per poundTotal DM required (lbs.)Budgeted productionBudgeted purchases (lbs.)Budgeted purchases costBeginning inventoryStandard pounds per unitBudgeted ending inventoryProduction needs		enter an amount of poundsenter an amount of pounds		enter an amount of poundsenter an amount of pounds		enter an amount of poundsenter an amount of pounds		enter an amount of poundsenter an amount of pounds
	Select a summarizing line for the second partSelect a summarizing line for the second part                                                          Standard pounds per unitStandard cost per poundBudgeted productionProduction needsTotal DM required (lbs.)Budgeted purchases (lbs.)Budgeted ending inventoryBeginning inventoryBudgeted purchases cost		Enter a total amount of pounds for the second partEnter a total amount of pounds for the second part		Enter a total amount of pounds for the second partEnter a total amount of pounds for the second part		Enter a total amount of pounds for the second partEnter a total amount of pounds for the second part		Enter a total amount of pounds for the second partEnter a total amount of pounds for the second part
	Select an itemSelect an item                                                          Budgeted purchases costStandard pounds per unitTotal DM required (lbs.)Budgeted purchases (lbs.)Budgeted productionStandard cost per poundBeginning inventoryBudgeted ending inventoryProduction needs		Enter an amount of poundsEnter an amount of pounds		Enter an amount of poundsEnter an amount of pounds		Enter an amount of poundsEnter an amount of pounds		Enter an amount of poundsEnter an amount of pounds
	Select a summarizing line for the third partSelect a summarizing line for the third part                                                          Budgeted ending inventoryProduction needsBudgeted purchases costBudgeted purchases (lbs.)Budgeted productionTotal DM required (lbs.)Standard cost per poundStandard pounds per unitBeginning inventory		Enter a total amount of pounds for the third partEnter a total amount of pounds for the third part		Enter a total amount of pounds for the third partEnter a total amount of pounds for the third part		Enter a total amount of pounds for the third partEnter a total amount of pounds for the third part		Enter a total amount of pounds for the third partEnter a total amount of pounds for the third part
	Select an itemSelect an item                                                          Beginning inventoryProduction needsStandard pounds per unitStandard cost per poundBudgeted productionBudgeted ending inventoryTotal DM required (lbs.)Budgeted purchases costBudgeted purchases (lbs.)		Enter a dollar amountEnter a dollar amount		Enter a dollar amountEnter a dollar amount		Enter a dollar amountEnter a dollar amount		Enter a dollar amountEnter a dollar amount
	Select a closing direct materials purchases budget itemSelect a closing direct materials purchases budget item                                                          Production needsStandard cost per poundBudgeted purchases (lbs.)Total DM required (lbs.)Budgeted purchases costBeginning inventoryBudgeted productionBudgeted ending inventoryStandard pounds per unit		Enter a total amount for the direct materials purchases budgetEnter a total amount for the direct materials purchases budget		Enter a total amount for the direct materials purchases budgetEnter a total amount for the direct materials purchases budget		Enter a total amount for the direct materials purchases budgetEnter a total amount for the direct materials purchases budget		Enter a total amount for the direct materials purchases budgetEnter a total amount for the direct materials purchases budget

Answer 1

Direct material purchase Budget

	January	February	March	Quarter
Production units	16925	31455	27913	76293
Standard pound per unit	4	4	4	4
Material needed for production	67700	125820	111652	305172
Add: Desired ending inventory	10066	8932	7358	7358
Total	77766	134752	119010	312530
Less: Beginning inventory	-15498	-10066	-8932	-15498
Raw material purchase	62268	124686	110078	297032
Cost per pound	0.33	0.33	0.33	0.33
Direct material purchase cost	20548	41146	36326	98020

April production = 18860*16%[phone] = 22993*4*8% = 7358