Coronado Industries has adopted the following production budget for the first 4 months of 2022. 

 

Each unit requires 4 pounds of raw materials costing $6 per pound. On December 31, 2021, the ending raw materials inventory was 7.360 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. 

Prepare a direct materials purchases budget by month for the first quarter.

Transcribed Image Text:

Month Month January 9.200 March February 7,360 April Units Units 4,600 3.680 Month Month January 9.200 March February 7,360 April Units Units 4,600 3.680

Answer rating: 100% (QA)

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