Paseo Industries has adopted the following production budget for the first 4 months of 2013 Month Units Month Units January 10,770 March 5,090 February 7,890 April 3,950 Each unit requires 5 pounds of raw materials costing $2 per pound On December 31, 2012, the ending raw materials inventory was 8,...

Paseo Industries has adopted the following production budget for the first 4 months of 2013. Month Units

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

Month	Units	Month	Units
January	10,770	March	5,090
February	7,890	April	3,950

Each unit requires 5 pounds of raw materials costing $2 per pound. On December 31, 2012, the ending raw materials inventory was 8,770 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month, Prepare a direct materials purchases budget by month for the first quarter.