Marcy Jones, Bates & Hill Fabricators' purchasing manager,

Marcy Jones, Bates & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter.



January


February


March


Quarter

Budgeted Production

22,200


38,200


33,800


94,200



Budgeted sales of April is 29,000 and its beginning inventory is 5,800. May month budgeted sales is 23,000. Company policy requires an ending finished goods inventory each month that will meet 15% of the following month’s sales volume.

Each brick requires 4.00 pounds of clay, and Marcy expects to pay $0.31 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 8% of the following month's production needs. Marcy expects to have 14,553 pounds of clay at a cost of $5,821 in inventory at the beginning of the year.


Required

Prepare Bates & Hill's direct materials purchases budget for the first quarter.


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