Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows: Units of Product
2022
Regular
Deluxe
Total
July
10,000
15,000
25,000
August
6,000
10,000
16,000
September
9,000
14,000
23,000
October
8,000
12,000
20,000

It takes 2 pounds of direct materials to produce the Regular product and 5 pounds of direct materials to produce the Deluxe product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 30% of the next month's production needs for the Regular product and 20% of the next month's production needs for the Deluxe product. Direct materials inventory on hand at June 30 were 6,000 pounds for the Regular product and 15,000 pounds for the Deluxe product. The cost per pound of materials is $5 Regular and $8 Deluxe.

Prepare separate direct materials budgets for each product for the third quarter of 2022.

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best of luck,

the divergent