Brinkley Company’s production budget for 2014 by quarters is as follows: (1) 6,000, (2) 7,000, (3), 8,000, and (4) 9,000. For the first quarter of 2015, the budget is 8,000 units. The manufacture of each unit requires three pounds of direct materials and an expected cost per unit of $2. The ending inventory of direct materials is expected to be 20% of the next quarter’s production needs. At December 31, 2013, Brinkley had 3,600 pounds of direct materials.
Instructions
Prepare a direct materials budget for Brinkley Company for the year ending December 31, 2014.
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