Brown Inc.'s production budget for Product X for the year ended December 31 is as follows:
Product X Sales 640,000 units
Plus desired ending inventory 85,000
Total 725,000
Less estimated beginning inventory, Jan. 1 90,000
Total production 635,000
In Brown's production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows:
Product X Material A .50 pound per unit Material B 1.00 pound per unit Material C 1.20 pound per unit The prices of direct materials are as follows: Material A $0.60 per pound Material B $1.70 per pound Material C $1.50 per pound Prepare a direct materials purchases budget for Product X.
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Brown Inc.'s production budget for Product X for the year ended December 31 is as follows:
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