Purple Co.'s production budget for Product X for the year endedDecember 31 is as follows:
| | Product X |
| Sales (in units) | | 640,000 |
| Plus desired ending inventory | | 85,000 |
| Total | | 725,000 |
| Less estimated beginning inventory, January 1 | | 90,000 |
| Total production | | 635,000 |
In Purple's production operations, Materials A, B, and C arerequired to make Product X.
The quantities of direct materials expected to be used for eachunit of product are as follows:
| Material A | 0.50 lb. per unit |
| Material B | 1.00 lb. per unit |
| Material C | 1.20 lb. per unit |
The prices of direct materials are as follows:
| Material A | $0.60 per lb. |
| Material B | $1.70 per lb. |
| Material C | $1.00 per lb. |
Prepare a direct materials purchases budget for Product X,assuming that there are no beginning or ending inventories fordirect materials (all units purchased are used in production).
| Direct Materials | |
| A | B | C | Total |
| Units required for production of Product X | | lb. | | lb. | | lb. | |
| Unit price | $ | | $ | | $ | | |
| Total direct materials purchases | | | $ | | $ | | $ |
