Create direct material purchase budget by month for quarter

Reference no: EM13257292

Moreno industries has adopted the following production budget for the first 4 months

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

Each unit requires 3 pounds of raw materials costing $2 perpound. On December 31, 2008, the ending raw materials inventory was9,000 pounds. Management wants to have a raw materials inventory atthe end of the month equal to 30% of next months productionrequirements.

Instructions:

Prepare a direct material purchase budget by month for thefirst quarter.

Reference no: EM13257292

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