Problem $3(20$ points$)$

The Butler Company accountant created the following Production Budget for $2024.$ Using the Production Budget and the following direct materials information create a Direct Materials Budget and answer the fill in the blank questions. Do not use commas or $ signs in your answer!!

Each unit produced requires $6$ gallons of direct materials. Each gallon costs $$2\mathrm{.}50.$ Management desires an ending inventory of direct materials on hand at the end of each month. The ending inventory is calculated as $20\%$ of the following months direct materials requited for production. January $2024$ Beginning Inventory $=480$ gallons.

Production Budget $2024$

Jan

Feb

Mar

Apr

$400$

$440$

$620$

$650$

February

March

April

Production in units

Gallons per unit

January

DM required for production January

February

March

Ending Materials Inventory January

February

March

Direct materials required January

February

March

Beginning Materials Inventory January

February

March

Purchases $($gallons$)$

January

February

March

Cost

January

February

March

April