Roehler Industrial has estimated that production for the next 5 quarters will be:
Production Information
Quarter 1, 2011 45,000 units
Quarter 2, 2011 41,000
Quarter 3, 2011 49,000
Quarter 4, 2011 38,000
Quarter 1, 2012 47,000
Finished units of production require 6 lbs of raw material per unit. The raw material cost is $5.00 per lb. There are 54,000 lbs of raw material on hand at the beginning of Quarter 1, 2012. Roehler desires to have 20% of next quarter’s material requirements on hand at the end of each quarter.
Required:
Prepaer quarterly direct materials purchases budgets for Roehler Industries for 2011.
ROEHLER INDUSTRIES
Direct Materials Purchases Budget
For the Year Ending December 31, 2011
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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 [ # ]