Purple Co.'s production budget for Product X for the year ending December 31 is as follows:     Product X Expected units to be sold   640,000 Desired ending inventory, December 31   85,000 Total units available   725,000 Estimated beginning inventory, January 1   (90,000) Total units to be produced   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: Product X Material A 0.50 lb. per unit Material B 1.00 lb. per unit Material C 1.20 lbs. 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). Round unit price to two decimal places and the remaining answers to the nearest whole dollar. Purple Co. Direct Materials Purchases Budget For the Year Ending December 31   Direct Materials   A B C Total Units required for production of Product X fill in the blank 1 lbs. fill in the blank 2 lbs. fill in the blank 3 lbs.   Unit price $fill in the blank 4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Purple Co.'s production budget for Product X for the year ending December 31 is as follows:

    Product X
Expected units to be sold   640,000
Desired ending inventory, December 31   85,000
Total units available   725,000
Estimated beginning inventory, January 1   (90,000)
Total units to be produced   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:

Product X
Material A 0.50 lb. per unit
Material B 1.00 lb. per unit
Material C 1.20 lbs. 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). Round unit price to two decimal places and the remaining answers to the nearest whole dollar.

Purple Co.
Direct Materials Purchases Budget
For the Year Ending December 31
  Direct Materials
  A B C Total
Units required for production of Product X fill in the blank 1 lbs. fill in the blank 2 lbs. fill in the blank 3 lbs.  
Unit price $fill in the blank 4 $fill in the blank 5 $fill in the blank 6  
Total direct materials purchases $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 $fill in the blank 10 
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