Cornerstone Exercise 8.3 (Algorithmic) Direct Materials Purchases Budget

FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-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	47,000	$8.75		6,200	$16.50
February	61,000	$8.75		8,000	$16.50
March	88,000	$8.75		12,500	$16.50
April	120,000	$8.75		16,000	$16.50

FlashKick requires ending inventory of product to equal 30 percent of the next months unit sales. Beginning inventory in January was 14,100 practice soccer balls and 1,860 match soccer balls.

Every practice ball requires 0.5 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 4 ounces of glue. FlashKicks policy is that 30 percent of the following months production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement.

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.

1) Direct materials purchases budget for polyvinyl chloride panels:

Cornerstone Exercise 8.3 (Algorithmic) Direct Materials Purchases Budget

FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-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	47,000	$8.75		6,200	$16.50
February	61,000	$8.75		8,000	$16.50
March	88,000	$8.75		12,500	$16.50
April	120,000	$8.75		16,000	$16.50

FlashKick requires ending inventory of product to equal 30 percent of the next months unit sales. Beginning inventory in January was 14,100 practice soccer balls and 1,860 match soccer balls.

Every practice ball requires 0.5 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 4 ounces of glue. FlashKicks policy is that 30 percent of the following months production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement.

Required:

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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:

FlashKick Company
Direct Materials Purchases Budget - Polyvinyl Chloride Panels
For January and February
Polyvinyl chloride panels:		January		February
Units produced
Direct materials for production
Total needed
Direct materials purchases

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Direct materials purchases budget for bladder and valve:

FlashKick Company
Direct Materials Purchases Budget - Bladder and Valve
For January and February
Bladder and valve:		January		February
Units produced
Direct materials for production
Total needed
Direct materials purchases

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Direct materials purchases budget for glue:

FlashKick Company
Direct Materials Purchases Budget - Glue
For January and February
Glue:		January		February
Units produced
Direct materials for production
Total needed
Direct materials purchases

2) Direct materials purchases budget for bladder and valve:

3) Direct materials purchases budget for glue: