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Determine the direct materials purchases budget

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Point 1: Marshall Publishers Inc. budgeted production of 32,000 diaries in 2016. Paper is required to produce a diary. Assume 103 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 198,000 square yards. The desired December 31, 2016, paper inventory is 148,000 square yards.

Question 1: If paper costs $0.14 per square yard, determine the direct materials purchases budget for 2016. If required, round your final answer to the nearest dollar.

Reference no: EM132472471

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