Reference no: EM132669185

Brown Inc.'s 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 Brown'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 $0.60 per pound

Material B $1.70 per pound

Material C $1.50 per pound

Problem 1: Prepare a direct materials purchases budget for Product X.