Dewitt Industries has adopted the following production budget for the first 4 months of 2012.

Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2011, 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 first quarter.

Transcribed Image Text:

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