Bramble Corp. is planning to sell 1300 boxes of ceramic tile, with production estimated at 1270 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Bramble has 4600 pounds of clay mix in beginning inventory and wants to have 4500 pounds in ending inventory. What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

Purchases= 55,780 pounds

Explanation:

Giving the following information:

Production= 1270 boxes

Each box of tile requires 44 pounds of clay mix

Bramble has 4,600 pounds of clay mix in beginning inventory and wants to have 4500 pounds in ending inventory.

To calculate the purchase required, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 1,270*44 + 4,500 - 4,600

Purchases= 55,780 pounds

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