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    Oct 25, 2013, 11:26 PM
    Direct Materials Purchase Budget Accounting
    The following are sales for the nine month period are as follows:

    Sales Forecast Month Estimated sales units

    Jan 250,000
    Feb 255,000
    Mar 264000
    Apr 290 000
    May 315000
    Jun 340000
    July 365000
    Aug 270000
    Sep 257000

    The estimated selling price per special component is $5


    Direct Materials are acquired one month prior to production and are paid the following month of purchase. One special component uses 2 units of direct materials. The company keeps stock of 25% of the next months estimated sales.

    Balance of direct materials as at 31 Dec 2013 amounts to 140,000 units of direct material at $0.25 per unit. There is no change in the cost direct material.

    Prepare direct materials purchase budget.



    Please help! I'm stuck for very long.

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