Question

Direct Materials Purchases Budget Flash Kick Company manufactures and sells soccer balls for teams of children in elementary and high school FlashKick's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line Chigh-performance soccer balls used in games). In the first four months of next year, Flashkick expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 48,000 $8.55 6,000 $16.60 February 60,000 $8.55 8,100 $16.60 March 89,000 $8.55 12,000 $16.60 April 100,000 $8.55 16,000 $16.60 Flashick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,600 practice soccer balls and 1,200 match soccer balls. Every practice ball requires 06 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue Flash Kick's policy is that 20 percent of the following month's production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement Required: Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent Direct materials purchases budget for polyvinyl chloride panels:

Answer 1

Working notes: Flash Kick Company Production Budget For January, February and March January February Budgeted Sales 48,000 60,000 Add : Closing inventory 12,000 17,800 Total Needs 60,000 77,800 Less: Opening Inventory 9,600 12,000 Production Budget 50,400 65,800 March 89,000 20,000 20% of 100,000 109,000 17,800 91,200 FlashKick Company Direct Material Purchases Budget- Polyvinyl Chloride Panels For January and February Polyvinyl chloride panels: January February Units produced 50,400 65,800 Direct materials per unit 0.601 0.60 Direct materials for production 30,240 39,480 Desired ending inventory 7,896 10,944 20%* of 91,200*0.60 Total needed 38,136 50,424 Less: Beginning Inventory 6,048 7,896 Direct material purchases 32,088) 42,528 FlashKick Company Direct Material Purchases Budget-Bladder and Valve For January and February Bladder and valve: January February Units produced 50,400 65,800 Direct materials per unit 1 Direct materials for production 50,400 65,800 Desired ending inventory 13,1601 18,240 20%* of 91,200*1 Total needed 63,560 84,040 Less: Beginning Inventory 10,0801 13,160 Direct material purchases 53,480 70,880 FlashKick Company Direct Material Purchases Budget-Glue For January and February Glue: January February Units produced 50,400 65,800 Direct materials per unit 3 Direct materials for production 151,200 197,400 Desired ending inventory 39,4801 54,720 20%* of 91,200*0.60 Total needed 190,680 252,120 Less: Beginning Inventory 30,2401 39,480 Direct material purchases 160,440 212,640