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Prepare the direct material purchases budget

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Question - (XYZ) Company manufactures and sells a single product. Each unit requires three feet of tubing. (XYZ) budgeted production is as follows:

December 15,000 units

January 14,000 units

February 15,000 units

March 12,000 units

April 13,000 units

(XYZ) budgets monthly ending inventories to be equal to 20% of the following month's production needs. The January beginning inventory meets this requirement. The tubing costs $0.80 per foot. Prepare the direct material purchases budget for tubing for the first quarter.

Reference no: EM133169325

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