Jordan Auto has developed the following production plan for its new auto part. Each unit contains three

Question:

Jordan Auto has developed the following production plan for its new auto part.

Each unit contains three pounds of raw material. The desired raw materials ending inventory is 120 percent of the next month€™s production needs, plus an additional 500 pounds. January€™s beginning inventory meets this requirement.

Required

Prepare the direct materials purchases budget for the fi rst three months of the comingyear.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...