Dallas Industries has adopted the following production budget for the first 4 months of 2014.

Each unit requires 2 pounds of raw materials costing $2 per pound. On December 31, 2013, the ending raw materials inventory was 4,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month€™s production requirements.

Instructions
Prepare a direct materials purchases budget by month for the fi rstquarter.

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Month Units Month January February Units 10,000 c 5,000 4,000 8,000 April