Reference no: EM131736917

Question - Purple Inc. production budget for Product X for the year ended December 31 is as follows:

                                                                              Product X

Sales                                                                      640,000 units

Plus desired ending inventory                                    85,000       

Total                                                                       725,000

Less estimated beginning inventory, Jan. 1                 90,000

Total production                                                       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               .50 pound per unit

 Material B             1.00 pound per unit

Material C              1.20 pound per unit

The prices of direct materials are as follows:

Material A              Dh 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).