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

Transcribed Image Text:

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