Tall Oak, Inc. produces ruler from plactic resin. TallOak has estimated production and sales of rule in units for the next 2 months as: May June Estimated production 42,000 48,000 Estimated sales 50,000 36,000
Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oak wants to have 20% of the next month’s material requirements on hand at the end of the each month.instruction: on column a workpaper, prepare a direct material purchases budget for the month of May