Dallas Industries has adopted the following production budget for the first 4 months of 2013.

Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2012, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month€™s production requirements.

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

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Month Units January February 8,000 Month Units March 5,000 April 4,000