Assignment:
Brown Inc. production budget for Product X for the year ended December 31 is as follows: Product X Sales 640,000units 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 1.00 per pound 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).
Total direct materials purchases: Material A: $ ________ Material B: $ ________ Material C: $ ________ Total: $ ________