Ivey, Inc. makes and sells buckets. Each bucket uses 3/4 pound of plastic. Budgeted production of buckets in units for the next three months is as follows: 
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 $2.12 per pound.
Instructions
Prepare a direct materials purchases budget for the month of May.
Definitions:
Disposable Income
The spending and saving financial capacity of households after deductions for income taxes.
MPC
Marginal Propensity to Consume - the proportion of any additional income that is spent on consumption rather than being saved.
Consumption
The act of using goods and services for personal use, often considered in economic terms as an indicator of economic health.
Disposable Income
Fiscal space for households' spending and saving maneuvers after settling income taxes.
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