Dallas Industries has adopted the following production budget for the first 4 months of 2014.
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Month
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Units
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Month
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Units
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| January |
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10,340 |
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March |
|
5,160 |
| February |
|
8,290 |
|
April |
|
4,200 |
Each unit requires 5 pounds of raw materials costing $3 per pound. On December 31, 2013, the ending raw materials inventory was 9,320 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements.
Prepare a direct materials purchases budget by month for the first quarter.
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DALLAS INDUSTRIES
Direct Materials Purchases Budget
For the Quarter Ending March 31, 2014
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January
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February
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March
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$
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$
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$
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$
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$
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$
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