Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.16 per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings for the next 4 months as follows: July August September October Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy the inventory policy. Units 3,500 4,400 4,900 6,300 Required: Prepare a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole value. Langer Company Direct Materials Purchases Budget For July, August and September Units to be produced Direct materials per unit (ounces) Production needs Desired ending inventory (ounces) Total needs. Less: Beginning inventory Direct materials to be purchased (ounces) Cost per ounce Total purchase cost July August September 100001 $0.16 0000000 $0.16 Total 100000 gl $0.16

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Direct Materials Purchases Budget
Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.16 per ounce. Langer molds the plastic into the proper shape.
Langer has budgeted production of the housings for the next 4 months as follows:
Units
July
3,500
August
4,400
September
4,900
October
6,300
Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the
amount needed to satisfy the inventory policy.
Required:
Prepare a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole
value.
Langer Company
Direct Materials Purchases Budget
For July, August and September
July
Units to be produced
Direct materials per unit (ounces)
Production needs
Desired ending inventory (ounces)
Total needs
Less: Beginning inventory
Direct materials to be purchased (ounces)
Cost per ounce
Total purchase cost
$0.16
August September Total
$0.16
$0.16
100001
$0.16
Transcribed Image Text:Direct Materials Purchases Budget Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.16 per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings for the next 4 months as follows: Units July 3,500 August 4,400 September 4,900 October 6,300 Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy the inventory policy. Required: Prepare a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole value. Langer Company Direct Materials Purchases Budget For July, August and September July Units to be produced Direct materials per unit (ounces) Production needs Desired ending inventory (ounces) Total needs Less: Beginning inventory Direct materials to be purchased (ounces) Cost per ounce Total purchase cost $0.16 August September Total $0.16 $0.16 100001 $0.16
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