Direct Materials Budget Problem Avatar, 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: Budgeted production (buckets in units) April 20,000 May 25,000 The company wants to maintain monthly ending inventories of plastic equal to 30% of the following month's budgeted production needs. The cost of plastic is $2.50 per pound 1. Prepare a direct materials purchases budget for the month of May. Units to be produced Times: Direct materials per unit Total pounds needed for production Add: Desired ending direct materials (lbs) Total materials required Less: Beginning direct materials (lbs) Direct materials purchases April June 30,000 May June