Garver Industries has budgeted the following unit sales:

2017		Units
January		10,000
February		8,000
March		9,000
April		11,000
May		15,000

The finished goods units on hand on December 31, 2016, was 2,000units. Each unit requires 3 pounds of raw materials that areestimated to cost an average of $4 per pound. It is the company'spolicy to maintain a finished goods inventory at the end of eachmonth equal to 20% of next month's anticipated sales. They alsohave a policy of maintaining a raw materials inventory at the endof each month equal to 30% of the pounds needed for the followingmonth's production. There were 8,640 pounds of raw materials onhand at December 31, 2016.
For the first quarter of 2017, prepare a production budget.

GARVER INDUSTRIES Production Budget For the Quarter Ended March 31, 2017
			January		February		March		Total
                                                                 Desired ending finishedgoods unitsExpected unit salesRequired production unitsTotalrequired unitsBeginning finished goods unitsCost per poundDirectmaterials purchases
                                                                 Direct materialspurchasesCost per poundDesired ending finished goods unitsExpectedunit salesRequired production unitsTotal required unitsBeginningfinished goods units
                                                                 Cost per poundDirectmaterials purchasesExpected unit salesTotal required unitsRequiredproduction unitsBeginning finished goods unitsDesired endingfinished goods units
                                                                 AddLess:	                                                                 Direct materials purchasesExpected unitsalesRequired production unitsCost per poundBeginning finishedgoods unitsTotal required unitsDesired ending finished goodsunits
                                                                 Cost per poundTotal requiredunitsExpected unit salesBeginning finished goods unitsDirectmaterials purchasesDesired ending finished goods unitsRequiredproduction units

For the first quarter of 2017, prepare a direct materialsbudget.

GARVER INDUSTRIES Direct Materials Budget For the Quarter Ended March 31, 2017
			January		February		March		Total
                                                                 Direct materialspurchasesTotal cost of direct materials purchasesTotal poundsneeded for productionDirect materials per unitBeginning directmaterialsDesired ending direct materialsCost per poundTotalmaterials requiredUnits to be produced		$		$		$
                                                                 Total pounds needed forproductionDirect materials purchasesDirect materials per unitUnitsto be producedTotal cost of direct materials purchasesTotalmaterials requiredDesired ending direct materialsBeginning directmaterialsCost per pound
                                                                 Cost per poundUnits to beproducedDesired ending direct materialsDirect materialspurchasesTotal pounds needed for productionBeginning directmaterialsDirect materials per unitTotal materials requiredTotalcost of direct materials purchases
                                                                 Total materials requiredCostper poundUnits to be producedDirect materials purchasesTotal costof direct materials purchasesTotal pounds needed forproductionDesired ending direct materialsDirect materials perunitBeginning direct materials
                                                                 Direct materialspurchasesCost per poundTotal materials requiredDirect materials perunitDesired ending direct materialsBeginning direct materialsTotalpounds needed for productionTotal cost of direct materialspurchasesUnits to be produced
                                                                 AddLess:	                                                                 Direct materials per unitTotal poundsneeded for productionTotal cost of direct materialspurchasesBeginning direct materialsTotal materials requiredUnits tobe producedCost per poundDirect materials purchasesDesired endingdirect materials
                                                                 Units to be producedDirectmaterials purchasesDirect materials per unitTotal pounds needed forproductionTotal materials requiredDesired ending directmaterialsTotal cost of direct materials purchasesCost perpoundBeginning direct materials
                                                                 Desired ending directmaterialsDirect materials per unitDirect materials purchasesCostper poundTotal materials requiredUnits to be producedTotal cost ofdirect materials purchasesBeginning direct materialsTotal poundsneeded for production
                                                                 Total cost of directmaterials purchasesDirect materials per unitUnits to beproducedTotal pounds needed for productionDesired ending directmaterialsBeginning direct materialsDirect materials purchasesCostper poundTotal materials required		$		$		$		$

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