Question:
OnTime Publishers Inc. budgeted production of 216,000 schedule planners in 2008. Paper is required to produce a planner. Assume 90 square feet of paper are required for each planner. The estimated January 1, 2008, paper inventory is 100,000 square feet. The desired December 31, 2008, paper inventory is 160,000 square feet. If paper costs $0.08 per square foot, determine the direct materials purchases budget for 2008.