Smoke Inc Makes and Sells Buckets $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { April } \quad \text { May }\quad \quad\text { June }$

question 121

Essay

Smoke Inc. makes and sells buckets. Each bucket uses 1/2 pound of plastic. Budgeted production of buckets in units for the next three months is as follows: $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { April } \quad \text { May }\quad \quad\text { June }$
$\text { Budgeted production } \quad 21,000 \quad22,000 \quad\quad 24,000$ The company wants to maintain monthly ending inventories of plastic equal to 25% of the following month's budgeted production needs. The cost of plastic is $2.20 per pound.
Instructions
Prepare a direct materials purchases budget for the month of May.

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