udgeted raw materials purchases = Budgeted raw materials needed for production + Budgeted ending raw materials inventory – Budgeted beginning raw materials inventory
The raw materials purchases budget of Strong, Inc. for this coming year
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | |
| Budgeted Production | 1020 | 2100 | 3100 | 3900 | 10120 |
| Materials requirement 3 ounce per unit |
3 | 3 | 3 | 3 | 3 |
| Total materials needed For the production |
3060 | 6300 | 9300 | 11700 | 30360 |
| Planned ending raw materials inventory (25% of next quarter’s production needs) |
1575 | 2325 | 2925 | 1800 | 8625 |
| Planned beginning raw materials iNventrory |
1500 | 1575 | 2325 | 2925 | 8325 |
| Total purchases of raw materials |
3135 | 7050 | 9900 | 10575 | 30660 |
| Price per Ounce 0.70 | $0.70 | $0.70 | $0.70 | $0.70 | $0.70 |
| Total cost of purchases of raw materials |
$2,194.50 | $4,935.00 | $6,930.00 | $7,402.50 | $21,462.00 |
