Estimated sales for January: Estimated inventories at January 1: Desired invento

Question

Estimated sales for January:

Estimated inventories at January 1:

Desired inventories at January 31:

Direct materials used in production:

Anticipated cost of purchases and beginning and ending inventory of direct materials:

Birds of a Feather Inc.
Direct Materials Purchases Budget
For the Month Ending January 31

Estimated sales for January:

  Bird house 6,000 units at $55 per unit   Bird feeder 4,500 units at $75 per unit

Estimated inventories at January 1:

Direct materials:   Wood 220 ft.   Plastic 250 lbs. Finished products:   Bird house 300 units at $23 per unit   Bird feeder 240 units at $34 per unit

Desired inventories at January 31:

Direct materials:   Wood 180 ft.   Plastic 210 lbs. Finished products:   Bird house 340 units at $23 per unit   Bird feeder 200 units at $34 per unit

Direct materials used in production:

In manufacture of Bird House:   Wood 0.80 ft. per unit of product   Plastic 0.50 lb. per unit of product In manufacture of Bird Feeder:   Wood 1.20 ft. per unit of product   Plastic 0.75 lb. per unit of product

Anticipated cost of purchases and beginning and ending inventory of direct materials:

  Wood $8.00 per ft.   Plastic $1.20 per lb.

Birds of a Feather Inc.
Direct Materials Purchases Budget
For the Month Ending January 31

Wood Plastic Total Required units for production:   Bird house   Bird feeder Plus desired units of inventory, January 31 Total Less estimated units of inventory, January 1 Total units to be purchased Unit price $ $ Total direct materials to be purchased $ $ $

Explanation / Answer

Direct material purchase budget :

Wood Plastic Total Required units for production Bird house 4832 3020 Bird feeder 5352 3345 Plus desired units of inventory, January 31 180 210 Total 10364 6575 Less estimated units of inventory, January 1 -220 -250 Total units to be purchased 10144 6325 Unit price 8 1.20 Total direct materials to be purchased 81152 7590 88742

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