Tripura Industries has adopted the following production budget for the first 4 months of 2020.

Each unit requires 2 kilograms of raw materials costing Rs300 per kilogram. On December 31, 2019, the ending raw materials inventory was 4,000 kilograms. 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 first quarter.

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