Please explain the answer. 3The Pet Company has two major pet carriers; Doggie Carrier and Kitty KatCarrier.It is time for the company to prepare their annual budget and they calledyou for help. The company has provided you with the following data:Direct material costPlastic5.00 per poundMetal4.00 per poundDirect labor rate$18.00 per hourDirect requirements per unitDoggie Carri Kitty Kat Carrier6 pounds1 pound5 hoursPlastic4 pounds.5 poundsMetalDirect labor Hours 3 hoursDoggieKittieSalesSales volume425620Selling price$160$205Expected inventory levelsBeg InvEnd InvDirect MaterialsPlastic290410Metal7065Finished ProductDoggie1030Kittie Kat2510RequiredPrepare the direct materials required for production needsPrepare the direct materials purchase budget

Pet company has two major pet carriers. 1. Doggie carrier 2. Kitty Kat carrier Direct materials requirements per unit are 1. Plastic for Doggie carrier = 4 pounds Plastic for Kitty Kat carrier = 6 pounds 2. Metal for Doggie carrier = 0.5 pounds Metal for Kitty Kat carrier = 1 pound 3. Expected Beginning inventory of Doggie = 10 units Expected Beginning inventory of Kitty Kat = 25 units 4. Ending inventory of Doggie = 30 units Ending inventory of Kitty Kat = 10 unitsSales volume of Doggie carrier = 425 units Sales volume of Kitty Kat carrier = 620 units For Doggie carrier, Total raw material requirements = Plastic + Metal = 4 + 0.5 pounds = 4.5 pounds For Kitty Kat carrier, Total raw material requirements = Plastic + Metal = 6 + 1 pounds = 7 pounds Purchases = Closing inventory + Sales - Opening inventory For Doggie carrier, Purchases = 30 + 425 - 10units = 445units For Kitty Kat carrier, Purchases = 10 + 620 - 25units = 605unitsHence, total requirements of raw materials = Purchases units x raw material pounds Doggie carrier = 445units x 4.5pounds = 2002.5 pounds of raw material Kitty Kat carrier = 605units x 7pounds = 4235 pounds of raw material Hence, requirements of raw material to Doggie = 2002.5pounds Kitty Kat = 4235 pounds.Direct material purchase budget : Opening inventory of Plastic = 290 Metal = 70 Closing inventory of Plastic = 410 Metal = 65 Requirement for Doggie = 2002.5 pounds Requirement for Kitty Kat = 4235 pounds Let assume total raw material purchase units = x Raw material consumed = Opening inventory + Purchases - Closing inventory For Doggie, 2002.5 = 290 + 10x - 410 10x - 120 = 2002.5 10x = 2122.5 x = 2122.5/10 x = 212.25 units For Kitty Kat, 4235 = 70 + 1.5x - 65 1.5x + 5 = 4235 1.5x = 4230 x = 4230/ 1.5 x = 2820 units Hence, Purchase of raw material units of Plastic = 212.25 pounds Metal = 2820 unitsPurchase budget of raw material = units of pounds x cost per pound Plastic = 212.25 pounds x $5 = $1061.25 Metal = 2820 pounds x $4 = $11280. Hence, purchase budget of Plastic = $1061.25 Metal = $11280.