Using the above information, find the direct material purchases for May and June.

* Assume July Production was 23,000 units. You need this information to find June direct materials purchases

Royal Company is preparing budgets for the quarter ending June 30. Budgeted sales for the next five months are: The selling price is $10 per unit. - The management at Royal Company wants ending FG inventory to be equal to 20% of the following month's budgeted sales in units. This is Royal's target inventory - On March 31, 4,000 units were on hand. - Look back to the sales forecast for April 20,000 units 20%=4,000 units (March EB) pril Beginning Balance =4,000 units pril Ending Balance =50,000 units 20%=10,000 units pril Sales Forecast =20,000 units pril Production = Sales +EBBB=20,000+10,0004,000=26,000 units epeat process for May, June The Direct Materials Budget - At Royal Company, five pounds of material are required per unit of product. Management wants materials on hand at the end of each month equal to 10% of the following month's production. - On March 31, 13,000 pounds of material are on hand. April Production =26,000 units (from production budget) Materials for April Production =26,000 units 5 pounds/unit =130,000 pounds March Ending Materials =10% of April Production =13,000 pounds April Purchases = April Production + April EB April BB April EB=10% of May Production =23,000 pounds April Purchases =130,000+23,00013,000=140,000 pounds Repeat Process for May, June