Answer:
Direct Material Purchases pounds for the two quarters 24300 lbs and 28860lbs
Direct Materials ($) for the two quarters $ 121500 $ 144300
Explanation:
<em>First we calculate the production budget to find out the direct Material usage during the quarter. The ending inventories are calculated by taking 25% of the next quarter's sales. Also the ending inventory of one quarter is the beg. inventory of the next quarter.</em>
<em>Production = Sales + Ending Inventory - Opening Inventory</em>
Hardin Company
Production Units Budget
For the quarters of the 6-month period ended June 30, 2017
Quarters
1 2 3 4
Sales Units 5800 6700 7200
+ Desired Ending Inventory 1675 1800
<u>Less Opening Inventory 1450 1675 1800</u>
<u>Production Units 5575 6825 7800 (given)</u>
<em>Now we find the production units in pounds by multiplying the production units with pound per unit. Then we find the direct materials purchases in pounds and in dollars.</em>
<em>Direct Materials = Production + Ending Inventory - Opening Inventory</em>
<em>The ending inventories are calculated by taking 40% of the next quarter's production requirements. Also the ending inventory of one quarter is the beg. inventory of the next quarter.</em>
Hardin Company
Direct Materials Budget
For the quarters of the 6-month period ended June 30, 2017
Quarters
1 2 3 Production Units 5575 6825 7800
D. Materials per unit 4 4 4
<u>D. Materials (pounds) 22300 27300 31200 </u>
Add Desired Ending Inventory 10920 12480
<u>Less Opening Inventory 8920 10920</u>
<u>Direct Material Purchases pounds 24300 28860</u>
Direct Materials ($) 5 5
<u>Direct Materials ($) $ 121500 $ 144300</u>
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