Question: Prepare a direct materials purchasing plan for January, February, and March, based on the following facts. Lana Gonzales owns a business that assembles ceiling fan

Prepare a direct materials purchasing plan for January, February, and March, based on the following
facts.
Lana Gonzales owns a business that assembles ceiling fan units. Each fan requires one motor system
and four blades. Motors cost $45 each, and blades are $4.00 each.
Lana is able to reliably obtain motors as needed, and does not maintain them in inventory. However,
blades are stocked in inventory sufficient to produce 40% of the following month's expected production.
Planned production is as follows:
January 11,000
February 13,000
March 16,000
April 12,000
In accordance with the stocking plan, January's beginning inventory included 13,000 blades

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