Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 42,000 $8.50 6,100 $16.40 February 57,000 $8.50 8,000 $16.40 March 80,000 $8.50 13,500 $16.40 April 115,000 $8.50 17,000 $16.40 FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 8,400 practice soccer balls and 1,220 match soccer balls. Every practice ball requires 0.5 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue.
Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 42,000 $8.50 6,100 $16.40 February 57,000 $8.50 8,000 $16.40 March 80,000 $8.50 13,500 $16.40 April 115,000 $8.50 17,000 $16.40 FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 8,400 practice soccer balls and 1,220 match soccer balls. Every practice ball requires 0.5 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Direct Materials Purchases Budget
Flashkick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are
the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In
the first four months of next year, FlashKick expects to sell the following:
Practice Balls
Match Balls
Units
Selling Price
Units
Selling Price
January
42,000
$8.50
6,100
$16.40
February
57,000
$8.50
8,000
$16.40
March
80,000
$8.50
13,500
$16.40
April
115,000
$8.50
17,000
$16.40
FlashKick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 8,400
practice soccer balls and 1,220 match soccer balls.
Every practice ball requires 0.5 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue.
Flashkick's policy is that 20 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory
in January for all raw materials met this requirement.
Transcribed Image Text:Required:
Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming
year. If required, round your answers to the nearest cent.
Direct materials purchases budget for polyvinyl chloride panels:
FlashKick Company
Direct Materials Purchases Budget - Polyvinyl
Chloride Panels
For January and February
Polyvinyl chloride panels:
January February
Units produced
Direct materials for production
Total needed
Direct materials purchases
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