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Question 1 Tall Oak, Inc. produces rulers from plastic resin. Tall Oak has estimated production and sales of rulers in units for the next 2 months as: May June Estimated production 42,000 48,000 Estimated sales 50,000 36,000 Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oak wants to have 20% of the next month's materials requirements on hand at the end of each month. Prepare a direct materials purchases budget for the month of May. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round pounds needed per unit to 1 decimal palce and cost per pound to two decimal palces.) TALL OAK, INC. Direct Materials Purchases Budget Month of May Estimated production in units for May 42000 Total required pounds v 0.25 EXAMPLE Total pounds needed for production V 10500 OPTIONS Add Beginning inventory 2400 Pounds needed per unit Less Beginning inventory v 2100 Cost per pound Total pounds needed for production Pounds needed per unit v 10800 Ending inventory desired Cost per pound v 4.50 Estimated production in units for May Total required pounds Total cost of purchases of materials V 48600 $ Total cost of purchases of materials Beginning inventory