10/13/2020 Refer to Cornerstone Exercise 8.2 for the production budgets for practice balls and match balls.

ch balls. Every practice ball requires 0.7 squ…

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Chapter 8, Problem 3CE

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1.

To determine

Prepare a direct materials purchases budget for each type of raw materials for practice ball line for January and February of the coming year.

Explanation of Solution

Direct Materials Purchases Budget: The direct materials purchases budget is prepared to estimate the quantity of material to be purchased
for production. The purchases to be made are calculated by adding the total budgeted production to the ending inventory and then deducting
the beginning inventory

Prepare a direct materials purchases budget for each type of raw materials for practice ball line for January and February of the coming
year:

F Comapny

Raw Material Purchases Budget

For the Month of January and February
Polyvinyl chloride panels:    

Particulars January February

Units produced  (A) 58,500 62,400

Raw material required per unit (B) ×0.7 ×0.7
Direct materials needed for production (C = A × B) 40,950 43,680

Add: Desired direct materials in ending inventory 8,736 11,760

Total direct materials needed 49,686 55,440
Less: Projected beginning inventory of raw material (8,190) (8,736)

Direct materials purchases 41,496 46,704

     
Baldder and valve:    

     
Units produced  (A) 58,500 62,400
Raw material required per unit (B) ×1 ×1

Direct materials needed for production (C = A × B) 58,500 62,400

Add: Desired direct materials in ending inventory 12,480 16,800
Total direct materials needed 70,980 79,200

Less: Projected beginning inventory of raw material (11,700) (12,480)

Direct materials purchases 59,280 66,720
     

Glue:    
     
Units produced  (A) 58,500 62,400
Raw material required per unit (B) ×3 ×3
Direct materials needed for production (C = A × B) 175,500 187,200

Add: Desired direct materials in ending inventory 37,440 50,400

Total direct materials needed 212,940 237,600
Less: Projected beginning inventory of raw material (35,100) (37,440)
Direct materials purchases 177,840 200,160

Table (1)

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