Answer:
Results are below.
Explanation:
Giving the following information:
Each sculpture requires 8 pounds of direct materials for $2 per pound
The company's policy is to maintain direct materials inventory equal to 20% of the next month's materials requirement.
Beginning inventory= 6,180 pounds
<u>To calculate direct material purchases, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
<u>March:</u>
Purchases= 4,100*8 + (4,700*8)*0.2 - 6,180
Purchases= 34,140 pounds
Direct material busget= 34,140*2= $68,280
<u>April:</u>
Purchases= 4,700*8 + (5,500*8)*0.2 - 7,520
Purchases= 38,880
Direct material budget= 38,880*2= $77,760
