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Marx Industrial has estimated that production for the next five quarters will be:Production Information

1st quarter, 201739,000 units

2nd quarter, 201735,000 units

3rd quarter, 201742,000 units

4th quarter, 201734,000 units

1st quarter, 201841,000 units


Finished units of production require 10 pounds of raw material per unit. The raw material cost is $3 per pound. There is $117,000 of raw material on hand at the beginning of the first quarter, 2017. Marx desires to have 10 percent of next quarter's material requirements on hand at the end of each quarter.


Prepare quarterly direct materials purchases budgets for Marx Industrial for 2017.


Marx Industrial

Direct Materials Purchases Budget

For the Year Ending December 31, 2017

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

 

Units to be produced ________________ ________________ _______________ _______________ ________________


Cost of raw material per unit $______________ $_______________ $______________ $______________ $______________


Cost of raw material needed for production ________________ ________________ _______________ _______________ ________________


(Add) Desired ending inventory of raw material ________________ ________________ _______________ _______________ ________________


Total material needed ________________ ________________ _______________ _______________ ________________


(Less) Beginning inventory of raw material ________________ ________________ _______________ _______________ ________________


Required raw material purchases $________________ $________________ $ _______________ $_______________ $________________

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Marx Industrial has estimated that production for the next five quarters will be: Production Information 1st quarter, 201739,000 units 2nd quarter,...
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