Smart Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart 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, Smart expects to sell the following: Practice BaseBalls Match BaseBalls Units Selling Price Units Selling Price January 48,000 $8.85 6,400 $17.20 February 58,000 $8.85 7,500 $17.20 March 86,000 $8.85 13,000 $17.20 April 105,000 $8.85 17,000 $17.20 Smart requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,600 practice soccer balls and 1,280 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. Smart Strike'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. 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. HINT: Units Produced = Expected Sales + Desired Ending Inventory - Beginning Inventory. Direct materials purchases budget for polyvinyl chloride panels:
Smart Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart 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, Smart expects to sell the following:
| Practice BaseBalls | Match BaseBalls | ||||||
| Units | Selling Price | Units | Selling Price | ||||
| January | 48,000 | $8.85 | 6,400 | $17.20 | |||
| February | 58,000 | $8.85 | 7,500 | $17.20 | |||
| March | 86,000 | $8.85 | 13,000 | $17.20 | |||
| April | 105,000 | $8.85 | 17,000 | $17.20 |
Smart requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,600 practice soccer balls and 1,280 match soccer balls.
Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. Smart Strike'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.
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:
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