Grove, Inc. produces rulers from plastic resin. Grove has estimated production and sales of rulers in units for the next 2 months as:
Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Grove wants to have 20% of the next month's materials requirements on hand at the end of each month.
Instructions
Prepare a direct materials purchases budget for the month of May.

Question

Grove, Inc. produces rulers from plastic resin. Grove has estimated production and sales of rulers in units for the next 2 months as:  
Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Grove wants to have 20% of the next month's materials requirements on hand at the end of each month.
Instructions
Prepare a direct materials purchases budget for the month of May.

Quizplus · Accepted Answer

The Answer of Grove, Inc. produces rulers from plastic resin. Grove has estimated production and sales of rulers in units for the next 2 months as:  
Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Grove wants to have 20% of the next month's materials requirements on hand at the end of each month.
Instructions
Prepare a direct materials purchases budget for the month of May.