Problem -
Jan 15,000 Cars
Feb 12,000 Cars
March 16,000 Cars
Each Car requires 4 wheels, and Jan beginning balance of wheels is 6,000. Each car requires 30 min of labor time at a rate of $12 per hour. The company tries to maintain 10% of the next month's forecasted materials needs in inventory.
Prepare the wheels direct materials purchase budget for February.