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Purple Co.'s production budget for Product X for the year ended December 31 is as...

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Accounting

Purple Co.'s production budget for Product X for the year ended December 31 is as follows:

Product X
Sales (in units) 640,000
Plus desired ending inventory 85,000
Total 725,000
Less estimated beginning inventory, January 1 90,000
Total production 635,000

In Purple'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:

Material A 0.50 lb. per unit
Material B 1.00 lb. per unit
Material C 1.20 lb. per unit

The prices of direct materials are as follows:

Material A $0.60 per lb.
Material B $1.70 per lb.
Material C $1.00 per lb.

Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials (all units purchased are used in production).

Direct Materials
A B C Total
Units required for production of Product X lb. lb. lb.
Unit price $ $ $
Total direct materials purchases $ $ $

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